News Release

WARSAW – WishBone Medical has announced it has secured $10 million in growth capital financing from existing investors, LKCM Headwater Investments, the private equity arm of Luther King Capital Management which is an SEC-registered investment adviser.

WishBone will use the new funding to accelerate product development, expand its manufacturing facilities and support other operational initiatives to meet growing demands.

As the only pediatric orthopedic company providing single-use, sterile-packed procedure kits, WishBone Medical is a rare example of a company that strengthened during the pandemic, realizing sales growth of 29% from 2019 to 2020, the company said in a news release issued Tuesday, Aug. 10.

The pediatric orthopedics market is valued at over $3.2 billion—expected to grow to $5.0 billion by 2025—as awareness regarding the need for implants designed for children continues to rise.

In the height of the COVID-19 pandemic, WishBone realized 150% orthopedic net sales growth from Q2 2020 to Q2 2021. “We partly attribute our recent success to the strides that healthcare facilities are taking to combat the spread of infection,” says WishBone’s Founder and CEO, Nick Deeter.

“In addition to infection control, hospitals are working to equip overwhelmed staff with tools for greater efficiency. It’s becoming increasingly clear that these initiatives can be achieved with the help of single-use, sterile packed kits like ours.”

WishBone Medical will use the new capital to hire additional personnel and expedite product development while expanding the manufacturing facilities of its subsidiary, Red Star Contract Manufacturing. The strategic expenditures will be a means to broadening the company’s product portfolio and increasing inventory in support of sales.  

“LKCM Headwater is proud to provide follow-on funding to promote the steady growth of WishBone Medical as they pursue their mission of helping children. The company is in a unique position to meet the intersecting demands for anatomically appropriate devices and single-use, sterile packed solutions, and we look forward to sharing in the success of management’s strategic deployment of this round of growth capital,” said Michael D. Bornitz, CFA, CPA | LKCM Headwater Investments

The new funding follows a $20 million investment from LKCM Headwater in October 2020 which was used to pay down acquisition-related debt. This round will be apportioned to WishBone in two tranches of $5 million this year as required by the company’s cash forecast.

Nick Deeter summarized the circumstances: “Our company has scaled rapidly within a few short years, and the momentum only continues to build with the help of our partners at LKCM. The new capital will drive growth and fuel our efforts to make innovative solutions widely available to orthopedic surgeons caring for children. Our team is geared up and excited to grow the niche market of pediatric orthopedics – This is the start of a new chapter for WishBone Medical.”

LKCM Headwater Investments is a Texas-based private equity firm that seeks to partner with management teams to build highly successful companies taking an operationally minded approach and provide companies with the tools necessary to build market leaders with sustainable competitive advantages. 

Red Star Contract Manufacturing is a vertically integrated, lean company that is focused on the medical device industry with expertise in insert injection molding and sterile packaging. Red Star is based in Larwill.

For further information, visit www.WishBoneMedical.com or contact Kaitlyn Hughes, Director of Marketing & Communications, at (574) 306-4006.