Organogenesis Inc., a Canton company that sells wound care and tissue regeneration products, is scheduled to announce Tuesday that it’s buying a leading supplier of tissue products used in many spinal and orthopedic surgeries. It did not disclose how much it’s paying for NuTech Medical Inc., of Birmingham, Ala.

The acquisition will give Organogenesis entry into a market where annual sales total an estimated $450 million and are projected to reach more than $750 million by 2020.

Both companies are privately held. NuTech, which has about 40 employees, will operate as a new division of Organogenesis, which has about 590 employees, including 265 at its Canton headquarters and manufacturing site.


“This rounds out our portfolio and fills a product gap,” said Organogenesis’s chief executive, Gary Gillheeney.

“It provides us an entrance into the orthopedic surgical space. Amniotic products open up about 40 percent of the wound care market that we don’t have access to.”

Organogenesis, founded in 1985 as a Massachusetts Institute of Technology spinoff, currently sells regenerative medicine products such as Apligraf and Dermagraft, which are used for wound care and tissue regeneration.

The company went public a year after it was founded but reverted to private ownership in a 2002 restructuring. Organogenesis laid off 150 workers in 2014 after the Centers for Medicare and Medicaid Services decided to reimburse it at a lower rate by bundling its products with other medical services.

But the company has resumed its growth, Gillheeney said, and expects to add about 100 employees by the end of the year.

While the takeover of NuTech won’t immediately bring jobs to Massachusetts, he said, the Organogenesis manufacturing facility in Canton eventually could provide added capacity for making amniotic products as the company expands that business.

In the meantime, Organogenesis plans to retain the entire NuTech workforce in Alabama as well as its independent sales force of more than 100 represenatives nationally, Gillheeney said.


Robert Weisman can be reached at robert.weisman@globe.com. Follow him on Twitter @GlobeRobW.