Palladin buys KT Health

Palladin Consumer Retail Partners has acquired KT Health. No financial terms were disclosed. KeyBank provided the debt financing for the transaction. Piper Jaffray served as financial advisor  to KT Health on the deal. KT Health is a provider of kinesiology tape and related sports medicine products.

PRESS RELEASE

BOSTON, MA and LINDON, UT –January 23, 2014– Palladin Consumer Retail Partners, LLC (“Palladin” or “PCRP”) (http://www.pcrp.com) announced today the acquisition of KT Health, LLC (“KT Health” or the “Company”), the leading producer of kinesiology tape and related sports medicine products in the retail market. KT Tape, the Company’s flagship product, is used by professional and recreational athletes to prevent injury, reduce pain, promote recovery, and maximize comfort. KT Tape is the most widely distributed kinesiology tape brand in the U.S., sold in 22,000 retail doors in the sporting goods, food, drug, and mass retail channels, as well as through clinicians, online retailers, and the Company’s own e-commerce site, kttape.com. In addition, KT Tape is sold in over 70 countries worldwide through major international retailers in North America, South America, Europe, and Asia. KT Health empowers consumers with a wealth of educational resources, including a vast library of online videos and on-site demonstrations at over 200 athletic events each year. KT Tape has been adopted by notable professional athletes, and is officially endorsed by international volleyball icon Kerri Walsh.
KT Health, based in Lindon, UT, was formed in 2008 with the intent of empowering everyday athletes to prevent injury, recover faster and play harder. The Company will continue to be led by its founders, John Mackay, Jim Jenson, and Ryan Dewey. The founders and other shareholders will partner with Palladin by reinvesting a significant portion of their equity. Palladin’s support will enable KT Health to expand its market presence, product range, and opportunities in the sports medicine category. Terms of the transaction were not disclosed.
John Mackay, CEO of KT Health, said, “We are excited to join forces with the Palladin team, who have tremendous experience in growing consumer brands. Their support, expertise, and involvement will be instrumental in capitalizing on the significant growth opportunities ahead. We also look forward to working with our great retail partners and loyal customers, as we expand the reach of KT Tape and introduce other related products to benefit athletes worldwide.”
Mark Schwartz, CEO of Palladin, added, “We are delighted to partner with John, Jim, Ryan and the entire KT Health team to create the dominant player in the wider sports medicine products market. Their focus on product innovation, education, and training has enabled them to build a brand that consumers trust to help them treat injury and improve athletic performance.”
Palladin Consumer Retail Partners, previously known as Palladin Capital Group, is a private equity firm with extensive experience investing in and building leading retail and consumer brands. Founded in 1998, the firm prides itself on working closely with management teams to create value through strategic and operational initiatives. Its principals have previously held CEO and other senior executive roles at several wholesale, retail, and related companies. Palladin is investing out of its current fund which was closed in April 2012. Current and former investments include InMotion Entertainment, Nic + Zoe, J. McLaughlin, Things Remembered, Restoration Hardware, Andrew Marc, Party America, and Spencer Gifts.
KeyBank provided debt financing in the transaction. Latham & Watkins LLP acted as legal advisor to Palladin. Piper Jaffray acted as the exclusive financial advisor and Durham Jones & Pinegar, PC, acted as legal advisor to KT Health.

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