BREG is in the business of broken bones -- and sprained ankles and wounded ACLs and all kinds of other injuries to the bones, joints, and ligaments that afflict athletes and non-athletes alike. A maker of orthopedic braces and other devices, BREG's product line includes soft goods, functional braces, and post-operative immobilizers for joints and body parts from shoulder to foot. The sports medicine company also makes devices for rehabilitation and pain management, such as home physical therapy kits and cold therapy products. In mid-2012 former parent Orthofix International sold BREG to private equity firm Water Street Healthcare Partners for $157.5 million.
Change in Company Type
Orthofix chose to divest BREG, its sports medicine subsidiary, in order to focus on its core business of regenerative biologics. Water Street Healthcare Partners has a reputation for buying divested, non-core businesses and turning them into standalone companies.
Sales and Marketing
Founded in 1989, BREG was bought by Orthofix in 2003 and took advantage of its former parent company's global reach (Orthofix is headquartered in the Netherlands Antilles) by expanding internationally. BREG sells products in 36 countries around the world through a network of more than 100 domestic and international independent distributors.
The majority of BREG's revenues (about 64%) are attributable to the sale its bracing products. Some 35% its sales come from its cold therapy products used to minimize pain and swelling following knee, shoulder, elbow, ankle and back injuries, or surgery. The remainder of its revenue comes from the sale of other rehabilitative products.
BREG grows its product lines by introducing new and next-generation versions of its offerings. The company has research and development facilities in Wayne, New Jersey; Verona, Italy; McKinney, Texas; Vista, California; and Andover, United Kingdom. In 2009 it introduced one of those new innovations with the launch of its Lateral OA Brace, part of its line of BREG FUSION function knee braces.
It also increases the scope of its business operations by entering into supply agreements with other medical equipment companies. BREG has one such agreement with Novation to supply the company with its lines of osteoarthritic, patellofemoral, and postoperative knee braces. Additionally, under the agreement BREG also provides the Voluntary Hospitals of America (VHA), University Health System Consortium (UHC), and Provista member hospitals with its bracing products for the upper and lower extremities, including shoulder bracing, walkers, and ankle bracing. – less