Cortec Group has sold Performance Health & Wellness, a designer, manufacturer, and marketer of products sold to therapy, rehabilitation, and wellness professionals, to Gridiron Capital. Cortec Group acquired Performance Health & Wellness in April 2007.
“The management team of Performance Health & Wellness, led by Marshall Dahneke, who we brought in over four years ago, did a fantastic job building the business and executing on its growth strategy,” said Jeffrey Lipsitz, a Managing Partner at Cortec. “During the course of our ownership, we were able to make significant investments in key management personnel and marketing resources, which have helped deliver consistent revenue growth across numerous markets and clearly positioned the company for continued future growth. We wish Performance Health’s management team and Gridiron our very best.”
Performance Health & Wellness is a designer, manufacturer, and marketer of branded, consumable products sold to therapy, rehabilitation, and wellness professionals under the Thera-Band, Bio-Freeze, and Pedigenix brand names and to retailers under the Perform brand. The company’s products include resistance bands and tubing, topical analgesics, and foot care products, as well as a range of therapy and exercise products used by physical therapists, chiropractors, podiatrists, physical trainers, and massage therapists to promote strength and flexibility, and to provide pain relief for their patients. Performance Health is headquartered in Akron, OH and maintains manufacturing and sales operations globally (www.performancehealth.com).
“We are extremely pleased with our investment in Performance Health,” said David Schnadig, a Managing Partner at Cortec. “Following the sale of 180 Medical, which closed on September 28, 2012, Cortec Fund IV has already returned about 110% of called capital and we continue to own five other portfolio companies. We look forward to building on these successes to continue to generate attractive returns for our limited partners in Cortec Fund IV and V.”
Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $30 million to $300 million. Cortec currently manages over $1 billion in its two active funds. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).
Performance Health was co-advised on the transaction by Robert W. Baird & Co. and Piper Jaffray & Co., with Paul Hastings serving as counsel.
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12