Palladin Consumer Retail Partners has acquired KT Health, a producer of kinesiology tape and related sports medicine products. KT Health will continue to be led by its founders, John Mackay, Jim Jenson, and Ryan Dewey. The founders and other shareholders will partner with Palladin by reinvesting a significant portion of their equity.
“We are delighted to partner with John, Jim, Ryan and the entire KT Health team to create the dominant player in the wider sports medicine products market,” said Mark Schwartz, CEO of Palladin. “Their focus on product innovation, education, and training has enabled them to build a brand that consumers trust to help them treat injury and improve athletic performance.”
KT Health is a producer of kinesiology tape and related sports medicine products. Kinesiology tape is a type of thin, elastic cotton tape. When the tape is applied to a patient on a stretch greater than its normal length, it will “recoil” after being applied and create a pulling force on the skin or muscle that it is being applied to. This elastic property allows much greater range of motion compared to traditional white athletic tape and can also be left on for long periods of time before reapplication. KT Tape, the company’s flagship product, is used by professional and recreational athletes to prevent injury, reduce pain, promote recovery, and maximize comfort. KT Tape is sold in 22,000 retail stores in the sporting goods, food, drug, and mass retail channels, as well as through clinicians, online retailers, and the company’s own e-commerce site. KT Tape is sold in over 70 countries through international retailers in North America, South America, Europe, and Asia. KT Health was founded in 2008 and is based in near Provo in Lindon, UT (www.kttape.com).
“We are excited to join forces with the Palladin team, who have tremendous experience in growing consumer brands. Their support, expertise, and involvement will be instrumental in capitalizing on the significant growth opportunities ahead,” said John Mackay, CEO of KT Health.
Palladin Consumer Retail Partners, previously known as Palladin Capital Group, invests exclusively in retail and consumer products companies in North America and Europe that have revenues ranging from $50 million to $500 million. Palladin invests from $10 million to $50 million of equity capital in each transaction. The firm was founded in 1998 and is based in Boston (www.pcrp.com).
KeyBank provided debt financing for this transaction. Piper Jaffray acted as the exclusive financial advisor to KT Health.
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-24-14