OPTP

Unsolicited offer prompts family ownership group to explore strategic alternatives.

OPTP has been acquired by Gen Cap America

Based in Minneapolis, Minnesota, OPTP is a leading provider of innovative physical therapy, fitness, and wellness products. OPTP’s diverse range of products includes foam rollers, lumbar rolls, and exercise balls. OPTP’s product mix is segregated between Exclusive, OPTP-Branded, and Non-Exclusive products, with Exclusive and OPTP-Branded Products accounting for over 85% of the Company’s sales mix.

The Company is a strategic partner to industry thought leaders by providing comprehensive solutions, including distribution, production, and publishing capabilities. OPTP sells its products to healthcare professionals, clinics, and individuals nationwide directly through its own website, through catalogs, and through online retail platforms such as Amazon, as well as indirectly through third-party distributors and resellers.

Situation Overview

OPTP received an unsolicited offer from a large industry competitor. Instead of pursuing a one-off transaction, OPTP instead engaged Vermillion to run a competitive sale process.

I know it was your job to sell our business and that you were compensated for it. But the effort you made was tremendous and the manner in which you performed was spectacular. What you accomplished was miraculous! I appreciate you and I am grateful for you. – Joy Garvey, Owner, OPTP

M&A Transaction Process

Vermillion worked closely with OPTP for over ten months to prepare the Company for the sale before going to market. Vermillion advised OPTP on several strategic initiatives and decisions, including:

  • Advised OPTP on renegotiating terms with its largest strategic supplier.
  • Advised OPTP on succession planning for its CEO.
  • Advised OPTP on hiring a CPA firm to audit the Company’s financials and assist in identifying potential Nexus sales tax exposure.
Prospective Buyers Signed NDAs
First Round Bids
%
Premium Over Next Highest Bidder

Result

Through a broad marketing process, Vermillion spoke with 130 prospective buyers and secured 22 first round bids. OPTP was sold to Gen Cap America for 90% more than the unsolicited offer it had received prior to engaging Vermillion and at an 18% premium to the next highest bidder.

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