Breg Inc., a portfolio company of Water Street Healthcare Partners, has agreed to merge with UnitedOrthopedic Group, creating a new sports medicine company. Financial terms remain undisclosed.

The newly combined company will be headquartered in Carlsbad, California. Breg president Brad Lee will lead as president, while UOG chief executive Gary Henley will serve as an adviser.

Breg is known for developing rehabilitative orthopedic products and cold therapies. The company was bought by Water Street in 2012 through the firm's second fund, Water Street Healthcare Partners II LP, for $157.5 million in cash.

After merging with United Orthopedic, the product portfolio will feature four brands of orthopedic braces and deep vein thrombosis prophylaxis products: Breg, Bledsoe Brace Systems, Hope Orthopedics and Cothera.

For more coverage on health services and devices, see Medical Devices Drive M&A and 5 Technologies Drive Health Care M&A.

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