Gridiron Capital has exited its investment in Foundation Wellness with the sale of the company to Bansk Group.
Gridiron Capital acquired Foundation Wellness (then Remington Products Company) in April 2019. Remington Products was founded in 1934 and was a third-generation, privately held business until the family sold the company to an employee stock ownership plan (ESOP) in 2008.
Today, Foundation Wellness is a specialty designer and manufacturer of branded and private label orthotic products, including footbeds/insoles, foot care products, orthopedic braces, sports supports, and ergonomic safety products. Foundation Wellness’ branded products include PowerStep and Currex insoles, Foot Petals foot care products, FLAT SOCK no-show cushioned socks, and Doctor Hoy’s pain relief topical analgesic.
The company distributes and sells its branded products through multiple channels, including direct-to-consumer sales, specialty retailers, clinical channels (such as podiatrists and physical therapists), e-commerce platforms like Amazon, and mass retail stores like Target. The company’s private label products are sold to OEMs and distributors in the medical, foot care, orthopedic soft goods, safety, and military markets.
Foundation Wellness, led by CEO Sean Williams, is headquartered near Akron in Wadsworth, Ohio, and manufactures its products in the United States as well as at its company-owned manufacturing facility in Southeast Asia.
“Gridiron has actively helped us accelerate organic growth and supported us in identifying and completing strategically important brand acquisitions,” said Mr. Williams. “Through Gridiron’s Centers of Excellence, they have helped us to implement new technologies, systems, and processes, improve operations and supply chain, build and accelerate direct-to-consumer capabilities for continued rapid growth and consumer engagement, and form and develop a high-performing leadership team. They have been great partners that have helped us create a sustainable base for future growth.”
The global orthotics market is projected to grow at a compound annual growth rate (CAGR) of 6.5%, reaching $6.4 billion by 2030, driven by rising consumer demand for pain management, injury prevention, and performance enhancement products. As consumers increasingly prioritize health and wellness, companies like Foundation Wellness are well-positioned to capture market share in this expanding sector.
“After Gridiron purchased the company from its ESOP in 2019, Gridiron helped guide the business through COVID and invested significantly in the team, systems, technologies, and operations to transform the business from a primarily private label manufacturer to an innovative, consumer-facing, high-margin branded business that has grown both organically and through strategic acquisitions,” said Joe Saldutti, Gridiron Managing Director. “It’s been a pleasure to support Sean and the company’s exceptional leadership team as partners in this significant transformation. We are confident that Foundation Wellness is positioned for even greater success going forward.”
“Bansk’s deep expertise in consumer healthcare and track record of nurturing distinctive brands to drive long-term business growth aligns closely with our vision for Foundation Wellness,” said Mr. Williams. “We’re proud that our brands deliver products consumers can rely on to address pain, enhance performance, and amplify comfort. We are excited to continue innovating alongside the Bansk team.”
“Our partnership with Foundation Wellness is a story of collaboration, teamwork, and transformation,” said Tom Burger, Gridiron Co-Founder and Managing Partner. “The company has created something truly special in the wellness category and the business will continue to be a leader in innovation as it supports people who strive to live better, more active lives.”
Gridiron invests in manufacturing, service, and specialty consumer companies with enterprise values from $75 million to $600 million and EBITDA from $10 million to $60 million. Sectors of interest include branded consumer, business-to-business and business-to-consumer services, and niche industrial.
In July, Gridiron agreed to sell its controlling interest in Good Sportsman Marketing Outdoors (GSM) to Platinum Equity. Gridiron acquired GSM, a provider of accessories used in the hunting, sport shooting, and outdoor enthusiast markets, from Sentinel Capital in November 2020.
Gridiron is investing out of its fifth fund, which closed above target in October 2023 with $2.1 billion of capital. Fund V is the largest fund the firm has ever raised, significantly higher than the firm’s fourth fund, which closed in December 2020 with $1.35 billion of capital.
Bansk’s acquisition of Foundation Wellness is the firm’s third consumer healthcare platform investment and its fifth transaction in less than three years. This follows the pending acquisition of PetIQ, an Idaho-based provider of pet-focused medication, health and wellness services, as well as the acquisitions of Arcadia Consumer Healthcare, a New Jersey-based provider of over-the-counter medicines, vitamins, minerals, and supplements; CloSYS, a New Jersey-based provider of oral care products; and Avrio Health, another New Jersey-based over-the-counter consumer health products company.
Bansk invests between $100 million and $400 million of equity in consumer brands, with a specific interest in four sectors: beauty and personal care, health, food and beverage, and household products. In July 2023, the consumer-focused firm held a final close of its inaugural fund, Bansk Fund I LP, with $800 million of capital. Bansk was founded in 2019 and is based in New York City.
“As we see consumers increasingly focus on health, wellness, and fitness, along with an aging U.S. population seeking to live a more active lifestyle, demand for effective, pain-relieving orthotic solutions is poised for long-term, secular growth,” said Chris Kelly, a senior partner at Bansk Group. “For nearly 90 years, Foundation Wellness has built a reputation for prioritizing the health and wellness of consumers. We look forward to leveraging our track record in the consumer health sector to capitalize on strong demand for Foundation Wellness’ clinical orthotics offering and thoughtfully expand the company’s platform in adjacent categories.”
Bansk’s senior management team is led by executives with decades of consumer-focused investing and operating experience. The firm’s senior partner and chairman, Bart Becht, was previously the CEO of Reckitt Benckiser, a UK-based multinational consumer goods company specializing in health, hygiene, and home products. Brian O’Connor, the firm’s senior partner and chief investment officer, was previously with Vestar Capital Partners for nearly 20 years. Other partners at Bansk include Chris Kelly, formerly at TPG Growth, and Bill Mordan, formerly at Reckitt Benckiser.
Robert W. Baird & Co. was the financial advisor to Foundation Wellness on this transaction.
© 2024 Private Equity Professional | September 5, 2024
