Patterson Medical, a leading distributor of rehabilitation, sports medicine and assistive patient products, has signed a definitive agreement to acquire Performance Health, a leading manufacturer and supplier of consumer branded health, wellness and self-care products. The highly complementary combination is expected to create a market-leading, multi-channel branded supplier to global rehabilitation, recovery and sports medicine customers. Through a broader supply and distribution platform, enhanced capabilities and expanded offerings, over time the two companies expect to produce numerous benefits for customers, employees and suppliers. Patterson Medical, backed by majority shareholder Madison Dearborn Partners (MDP), is acquiring Performance Health from Gridiron Capital (Gridiron).
Deutsche Bank Securities Inc., Barclays and Citigroup Global Markets are leading the debt financing for the transaction.
With increased scale and complementary capabilities, Patterson Medical and Performance Health together will offer the broadest set of rehabilitation, recovery and sports medicine products globally, including many leading brands. Combined, the company will have an expansive supplier, distributor and retail network and these relationships will remain critical to the new company’s success. The combined company will be headquartered in Warrenville, IL. Performance Health will operate as a business segment of Patterson Medical and maintain its existing name and presence in Akron, OH.
Deutsche Bank Securities Inc. and Citigroup Global Markets are serving as Patterson Medical’s financial advisors with Kirkland & Ellis LLP serving as legal counsel. Credit Suisse is serving as financial advisor to Performance Health and Ropes & Gray LLP is serving as legal advisor.
Patterson Medical is the world's leading distributor of rehabilitation, sports medicine and assistive patient products to the physical and occupational therapy markets. This customer base includes hospitals, long-term care facilities, clinics and dealers.
Headquartered in Akron, Ohio, Performance Health is a global consumer branded health, wellness and self-care company. The Performance Health brands include Active Ankle, Biofreeze, TheraBand, Cramer, Bon Vital, TheraPearl, Hygenic and Perform, featuring a complementary product offering helping practitioners and patients relieve pain, accelerate recovery, grow stronger, improve performance and enhance quality of life for nearly 100 years.
Madison Dearborn Partners (MDP), based in Chicago, is a leading private equity investment firm in the United States. Since MDP’s formation in 1992, the firm has raised seven funds with aggregate capital of over $21 billion and has completed approximately 130 investments. MDP invests in businesses across a broad spectrum of industries, including health care; telecom, media and technology services; financial and transaction services; business and government services; basic industries; and consumer. Noteworthy health care investments include Ikaria, Kaufman Hall, Option Care (formed with Walgreens), Sage Products, Sirona Dental, Team Health, and VWR International.
Gridiron Capital, LLC, headquartered in New Canaan, Connecticut, is a private equity firm focused on creating value by acquiring and building middle-market manufacturing, service and specialty consumer companies in the United States and Canada. Gridiron’s principals work closely with management teams to develop strategies for portfolio companies, and to provide resources to execute business plans and build industry-leading companies.