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Water Street Partners with Orthofix to Acquire Breg

Water Street Healthcare Partners, a strategic private equity firm focused exclusively on the health care industry, announced today that it has closed a privately negotiated transaction to acquire Breg, Inc. from Orthofix International, N.V.

The transaction marks Water Street’s most recent partnership with an industry leader to expand its group of companies specializing in medical products, distribution, health care services, and pharmaceutical products and services.

Headquartered in Carlsbad, California, Breg designs and manufactures bracing products and cold therapy devices used for preventing and rehabilitating knee, shoulder, wrist, back and other orthopedic injuries. With the aging U.S. population, rising prevalence of chronic conditions, and the health care industry’s movement toward containing costs through non-surgical treatments, demand for these products is steadily increasing. Water Street plans to invest its industry expertise and resources to build Breg into a leading company specializing in non-surgical orthopedic products.

“Water Street stood out to our management team and to Orthofix as the ideal partner to accelerate Breg’s growth and expand our market position. Its team has years of experience leading and growing medical products companies, as well as a network of resources that will benefit Breg. I am excited about the opportunity to broaden Breg’s capabilities to offer our customers a more expansive portfolio of products and value-added services,” said Brad Lee, president, Breg.

Breg is Water Street’s fifth company specializing in medical products and the firm’s second investment in the rehabilitation industry. Earlier this month, Water Street sold Physiotherapy Associates, which it built into the nation’s foremost provider of outpatient rehabilitation services. Curt Selquist, an operating partner with Water Street who previously served as the company group chairman of Johnson & Johnson Medical, will serve as the lead director of Breg.

“Water Street has been seeking an investment in the orthopedic products market for some time. We identified Breg as the most attractive opportunity to build a market leader. It is highly regarded for bringing to market innovative, high quality products and services that advance orthopedic care. We will invest in research and development initiatives, and strategic acquisitions that will expand Breg to play a much greater role across the entire spectrum of orthopedic care,” said Mr. Selquist.

Founded in 1989, Breg offers cold therapy, knee, shoulder, spine, elbow/wrist, foot/ankle bracing and orthopedic practice solutions. The company’s products are sold through more than 100 distributors in 36 countries. Breg is based in Carlsbad, California with approximately 500 employees in the United States and Mexico. For more information, visit