M&A Deal Summary

Water Street Healthcare Partners and Martis Capital Managment Acquire Breg

On May 24, 2012, private equity firms Water Street Healthcare Partners and Martis Capital Managment acquired medical products company Breg from Orthofix Medical for 158M USD

Acquisition Highlights
  • This is Water Street Healthcare Partners’ 8th and Martis Capital Managment’s 2nd transaction in the Medical Products sector.
  • This is Water Street Healthcare Partners’ and Martis Capital Managment’s largest (disclosed) transaction.
  • This is Water Street Healthcare Partners’ 20th and Martis Capital Managment’s 3rd transaction in the United States.
  • This is Water Street Healthcare Partners’ 5th and Martis Capital Managment’s 2nd transaction in California.

M&A Deal Summary

Date 2012-05-24
Target Breg
Sector Medical Products
Buyer(s) Water Street Healthcare Partners
Martis Capital Managment
Sellers(s) Orthofix Medical
Deal Type Divestiture
Deal Value 158M USD

Target

Breg

Carlsbad, California, United States
Breg is a designer and manufacturer of bracing products and cold therapy devices used for preventing and rehabilitating knee, shoulder, wrist, back and other orthopedic injuries. Breg was founded in 1989 and is based in Carlsbad, California.

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Buyer(S) 2

Buyer

Water Street Healthcare Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 6.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Water Street is a specialist private equity firm that targets investments in healthcare companies. Specific areas of interest within healthcare include diagnostic devices, medical products, pharmaceutical services, specialty distribution, specialty pharmaceuticals, and specialty services. Water Street targets non-core units of larger corporations and private middle-market companies. Transactions are typically valued between $50 and $500 million. Water Street does not invest in biotechnology, traditional healthcare facilities (hospitals, nursing homes) or early-stage companies without positive cash flow. Water Street was formed in 2005 and is based in Chicago, Illinois.


DEAL STATS #
Overall 20 of 50
Sector (Medical Products) 8 of 14
Type (Divestiture) 5 of 7
State (California) 5 of 9
Country (United States) 20 of 47
Year (2012) 1 of 1
Size (of disclosed) 1 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-01 Physiotherapy Associates

Exton, Pennsylvania, United States

Physiotherapy Associates, Inc. is a provider of outpatient physical rehabilitation care offering a wide range of services, including general orthopedics, spinal care and neurological rehabilitation, as well as orthotics and prosthetics services.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-06-15 OraPharma

Horsham, Pennsylvania, United States

OraPharma, Inc. is a pharmaceutical company that discovers, develops and commercializes therapeutics for the treatment of periodontal disease at various phases of progression.

Sell $312M
DESCRIPTION

Martis Capital Management is a private equity firm focused exclusively on the North American middle-market healthcare industry. The Firm seeks founder-led companies in the services and outsourcing, information technology, consumer and wellness, and products and diagnostic sub-sectors. Martis considers buyout and growth equity opportunities with typical transactions between $25 and $100 million. Martis Capital Management is headquartered in San Francisco, California.


DEAL STATS #
Overall 3 of 22
Sector (Medical Products) 2 of 3
Type (Divestiture) 1 of 2
State (California) 2 of 5
Country (United States) 3 of 22
Year (2012) 1 of 3
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-12-01 HeartFlow

Mountain View, California, United States

HeartFlow is a medical technology company transforming the way cardiovascular disease is diagnosed and treated. With HeartFlow Analysis, a non-invasive personalized cardiac test, physicians are able to make better care decisions for their patients with suspected coronary artery disease--the number one killer of men and women worldwide. HeartFlow was founded in 2007 and is based in Mountain View, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-09-06 Atlantic Diagnostic Laboratories

Bensalem, Pennsylvania, United States

Atlantic Diagnostic Laboratories is a provider of clinical testing laboratory specializing in high-end toxicology tests, including drug testing for methadone clinics, behavioral centers and pain management treatment, and clinical testing for hospitals and physician offices. Atlantic Diagnostic Laboratories was founded in 1979 and is based in Bensalem, Pennsylvania.

Buy -

Seller(S) 1

SELLER

Orthofix Medical

Lewisville, Texas, United States

Category Company
Founded 1980
Sector Medical Products
Employees1,634
Revenue 747M EUR (2023)
DESCRIPTION

Orthofix Medical is a diversified global medical device company. Orthofix is a manufacturer and marketing of minimally invasive medical devices for the orthopedic and trauma markets. Orthofix Medical was founded in 1980 and is based in Lewisville, Texas.


DEAL STATS #
Overall 1 of 1
Sector (Medical Products) 1 of 1
Type (Divestiture) 1 of 1
State (California) 1 of 1
Country (United States) 1 of 1
Year (2012) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-07 Blackstone Medical

Springfield, Massachusetts, United States

Blackstone Medical, Inc. is an international spine product company dedicated to advancing techniques and technologies in the treatment of the human spine. Partnering with luminary spine surgeons to identify solutions and using a quality team approach with engineers, Blackstone creates breakthrough spinal implant, instrument and biologic products.

Buy $333M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-03-31 eNeura

Baltimore, Maryland, United States

eNeura, Inc. is a medical technology company that is pioneering the use of portable, non-invasive Transcranial Magnetic Stimulation devices for treatment of migraine. SpringTMS is a prescription-only device that utilizes single-pulse Transcranial Magnetic Stimulation (sTMS) to induce very mild electrical currents that can depolarize neurons in the brain.

Buy $65M