Orthofix International announced today that it has completed the divestiture of its Sports Medicine Business Unit, Breg, Inc., to Water Street Healthcare Partners. The purchase price was $157.5 million less normal and customary working capital adjustments and indebtedness.
Breg provides a portfolio of sports braces (knee, elbow, shoulder, spine and foot) and cold therapy products to treat a variety of sports medicine related conditions. The company is headquartered in Carlsbad, CA (www.breg.com).
Water Street plans to build Breg into a company specializing in non-surgical orthopedic products. Breg is Water Street’s fifth company specializing in medical products and the firm’s second investment in the rehabilitation industry. Curt Selquist, an operating partner with Water Street who previously served as the company group chairman of Johnson & Johnson Medical, will serve as the lead director of Breg.
Water Street Healthcare Partners is a Chicago-based private equity firm focused exclusively on healthcare. The firm has more than $1 billion of capital under management. The firm has particular expertise in corporate divestitures from healthcare companies (www.waterstreet.com).