One Equity Partners, the private equity arm of the sixth-largest US bank, Bank One, has added to its healthcare portfolio with the £87m (€142m) acquisition of the rehabilitation business of Smith & Nephew, the UK-based medical devices company.

One Equity paid £71m in cash for the rehabilitation business, which manufactures products for occupational and physical therapists. It will merge the unit with its portfolio company AbilityOne, which distributes rehabilitation products in the US. Smith & Nephew will retain a 21.5% stake in the newly merged firm.