Having completed a $19 million cash deal for Seattle Orthopedic Group Inc., Pasadena-based United States Manufacturing Co. will relocate its headquarters and the bulk of its operations to the Poulsbo, Wash. offices of its new subsidiary.

The move will cost more than 100 jobs at the 54-year-old company’s Pasadena operations, with 40 workers consolidated at its Corona plant and 12 moving to Poulsbo.

Tom Allen, USMC’s president, said the acquisition positions the company to become a dominant player for prosthetic and orthotic devices. It also has a strong presence in the custom knee, spine, elbow, neck and back braces.

“It gives us the broadest product line and the ability to apply resources for research and development and sales and marketing that would not be affordable by either company separately,” Allen said.

Both companies make artificial legs, feet, limbs, braces and related accessories. USMC has projected revenues of $24 million for 2001 on a 3,000-item catalogue, and Seattle Orthopedic has projected $16 million in 2001 revenues on a line of 600 products.

The equipment at USMC’s Pasadena and Corona plants is antiquated, Allen said, while the Poulsbo plant is state-of-the-art.

“The health care system has put so much pressure on product reimbursement decreasing the reimbursements that we’re forced to become automated in order to maintain profitability,” Allen said.

Seattle Orthopedic was sold by Bethesda, Md.-based Hanger Orthopedic Group Inc., which owns 620 facilities for the care of prosthetic and orthotic patients nationwide.

Dennis Currier, Hanger’s interim chief financial officer, said the manufacturing arm was sold to erase a portion of its $424 million debt. “Hanger wants to concentrate on the delivery of prosthetics and orthotic services to our patients. We didn’t consider Seattle Orthopedic to be our core business,” Currier said.