Townsend Design, an orthopedic manufacturing company best known for its knee bracing technology, has been purchased by the wholly-owned North American subsidiary of Thuasne (pronounced Two Ann), a French company that has been owned and operated for more than five generations by the same family.
Founded in 1847 and based near Paris, Thuasne leads the European market in the fabrication and distribution of elastic bandages, non-rigid braces and compression garments for the health care sector. Thuasne’s existing products and textile manufacturing capabilities in Europe will be complemented by Townsend’s USA fabrication facility and diverse range of rigid orthopedic knee braces for patients who experience injuries or mobility challenges.
Thuasne plans to sell Townsend’s orthopedic bracing products through its 15 company-owned European subsidiaries and more than 30 exclusive distributors in Asia, Africa, the Middle East, and Europe. Townsend Design will become the business platform for Thuasne North America in the United States and Canada.
Jeff Townsend, a graduate of UCLA and Northwestern, was working as a certified orthotist in his home town of Bakersfield, California, when he founded Townsend Design in 1984. From humble beginnings, Townsend has continuously developed a diverse line of custom, off-the-shelf and specialty braces as well as a range of rehabilitative devices. The company has over 130 employees in Bakersfield and approximately 60 sales representatives throughout the United States.
Within the United States and Canada, Townsend’s business model has primarily focused on providinghigh quality products and services to orthotic and prosthetic facilities, orthopedic surgeons, and other orthopedic related professionals. Outside the USA, Townsend Design’s bracing solutions are sold by independent distributors in over 25 countries.
“Becoming part of a strategically integrated and geographically diversified global enterprise will ensure patients in the United States and around the world continue to benefit from Townsend’s exclusive bracing technology,” said Rick Riley, Townsend’s Chief Executive Officer, who will continue to oversee the company’s operations. “
Despite an uncertain economy and market complexities, 2010 was our best year. We were able to sell at the right time to another family owned business that will allow us to transition our employees and sales force to a new business platform without putting anyone’s job or income at risk. It was the ideal scenario for taking Townsend to a new level without significant changes to our existing operations or the potential loss of people who have contributed to Townsend’s success.”
While Townsend Design has been solicited for acquisition by several large orthopedic manufacturers and numerous capital investors, the owners weren’t looking to sell. But several factors made this the right time and the right opportunity.
“Thuasne has virtually no business in the United States -- less than one percent of their revenues come from the US market. They can tap into our strong customer and distribution base, and utilize our products to expand their orthopedic business in Europe and around the world,” Riley said. “Thuasne will benefit from our products, our relationships, and our people.”
Townsend is a respected brand known for high quality, custom fabrication capabilities, and its exclusive knee bracing solutions. Thuasne’s reasons for purchasing Townsend include consistent profitability; the company’s existing customers and annual revenues; an experienced management team that understands the USA market; rigid bracing products and fabrication capabilities that will complement Thuasne’s current manufacturing and product range; a well established USA sales force; and a network of international distributors -- some of which operate in countries not currently serviced by Thuasne.
In describing the transition of ownership, Mike Huston, Townsend’s Senior Vice President, praised Jeff Townsend and Carol Adamson (formerly Carol Townsend) for creating work opportunities for hundreds of employees over the past 26 years. “Jeff and Carol could have increased their income, as several of our competitor’s have, by eliminating USA jobs and moving to manufacturing facilities in Mexico or China. In many ways, this decision represents their continued commitment to protecting the future job security of Townsend’s employees and our sales force.”
Riley also credited the company’s success to Jeff’s loyalty to the O&P community and decisions he has made through the years to stick with the same game plan and business philosophy.
“We’ve always found a way to grow and be profitable without having to enhance our revenues at the expense of our customers,” said Riley. “Jeff believed it was a conflict of interest for orthopedic manufacturers to offer insurance billing and patient care services -- and still expect O&P customers to willingly buy their products. He always said he would rather go out of business than compete against the customers who have historically supported Townsend Design.”
Selling Townsend to another orthopedic manufacturer with a strong presence in the United States could have resulted in the relocation or consolidation of the company; the termination of employees and sales representatives; or modifications to the company’s business model that would compromise customer relationships and/or alter the values and philosophies that have been the foundation for Townsend’s success.
“We want to be competitive and grow, but we were not willing to sacrifice how we have historically treated our employees, reps and customers,” said Riley. “We believe Thuasne will allow us to stay true to our mission and values.”
For the past two decades Thuasne has been lead by Elizabeth Ducottet (pronounced Dee Co Tay). She serves as CEO/President and Board Chairman, and is the fifth generation of her family to own and oversee the company’s operations. She has three adult children who are minority owners and board members for Thuasne’s parent company.
“Thuasne owns fabrication, customer service and distribution centers in France, Germany, Romania and the Czech Republic,” said Huston, who oversees Townsend’s international sales and foreign distributors. “We visited Thuasne’s corporate offices and toured their main industrial sites in France. While we were impressed by their organization and facilities, what convinced us this was a good fit for Townsend was spending time with Mrs. Ducottet and her children.”
“While the cultures of our countries may be different, the business culture and operating values within both companies are very similar,” added Riley. “It’s a family-owned company, in business over 160 years, and it was evident to us that the owners genuinely care about their employees and their customers. That made Townsend’s executive team comfortable about the decision to transition ownership to another family-owned business.”
Until 1990, Thuasne’s business was conducted solely within the borders of France. Under Ducottet’s leadership, Thuasne has grown organically and through acquisitions from sales of 27 million Euros in 1990 to over 135 million Euros in 2010 ($180 million US). Thuasne has nearly 1,300 employees in Europe who are involved in the fabrication, sales and distribution of products including:
- Medical lumbar belts
- Medical orthoses -- knee braces, ankle braces, wrist braces, and shoulder braces
- Medical compression stockings, socks, tights, and elastic bandages
- Custom made compression garments for burn victims
- Homecare products -- medical beds, wheelchairs, bathroom accessories, walking and functional aids
- Prosthetic Breast Forms
“It is exciting to describe to our employees, sales representatives and customers how this acquisition will create opportunities for Townsend to develop new products and expand the range of services we offer.
Unlike several acquisitions that have occurred in our industry, we won’t experience the consequences typically associated with changes to personnel and daily operations” said Riley. “While it is natural for employees and sales representatives to feel a bit apprehensive, and for customers to speculate about how the company could change, Thuasne knows we have a successful business model and a very dedicated team. Townsend will have the opportunity to help Thuasne achieve its ambition to be globally recognized as a leading provider of orthopedic braces.”
Customers who have questions or who would like to discuss the acquisition are invited to call 800.432.3466 or Email one of the company’s executives, listed below:
- Rick Riley, CEO -- rriley@townsenddesign.com
- Mike Huston, Senior Vice President -- huston@townsenddesign.com
- Kurt Townson, VP of USA Sales -- ktownson@townsenddesign.com
