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Performance Health going cold towards Biofreeze: Bloomberg
Posted on Friday, 12 April 2019 13:23
Athletic training and physical therapy products group Performance Health is considering freezing out its popular pain-relief gel Biofreeze via a sale worth around USD 1.00 billion, Bloomberg reported.
The news provider cited people familiar with the situation as saying the potential disposal comes amid interest from possible buyers looking to expand in consumer healthcare.
While the prospective suitors were not named at this time, Bloomberg’s insiders did say that Johnson & Johnson may take a look at Biofreeze.
Performance Health is hoping for initial bids to be tabled in May, according to the sources, who added a buyer is expected to be picked in the next three months.
However, these people cautioned that no final decision has been made and the group could ultimately choose to hold onto the assets.
Biofreeze has over 25 years’ experience making gels, roll ons and sprays that use menthol to temporarily ease joint and muscle pains.
The products are sold on its own website and in stores such as Walgreens Boots Alliance and Target and are retailed in the UK for between GBP 3.49 for a 30ml tube of gel to GBP 9.99 for larger 118ml packages.
Biofreeze launched a pain relief patch last month, providing cold therapy to affected areas and signing a partnership with the National Basketball Association’s Portland Trail Blazers to promote the new product on their jerseys.
Performance Health is owned by private equity firm Madison Dearborn Partners, which has raised seven funds with an aggregate capital of USD 23.00 billion since 1992.
The buyout group picked up the company, via Patterson Medical Holdings, in 2016 for an undisclosed amount, shortly after the group had filed to go public.
Performance Health claims to be a leader in consumer healthcare and the largest global manufacturer and distributor of products to the rehabilitation and sports medicine markets.
It claims to have clients in over 100 countries, with brands such as TheraBand, TheraPearl, Cramer, Sammons Preston and Rolyan under its belt.
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