Invacare Corporation Announces Sale of ProBasics Brand in Line with Transformation Strategy
September 30 2016 - 4:00PM
Business Wire
Invacare Corporation (NYSE: IVC) announced today that it has
completed the sale of its subsidiary, Garden City Medical, Inc.,
dba PMI and Pinnacle Medsource, which sources and distributes
primarily single-use products under the brand ProBasics® by PMI, to
Compass Health Brands for approximately $13.8 million in cash,
subject to certain post-closing adjustments. As part of the
transition, Invacare will cease selling the ProBasics products
after a 15-day transition period.
''While we remain committed to the Invacare® brand of lifestyle
products, the ProBasics value-oriented line of products no longer
fits within the company’s strategy to focus on solutions that bring
greater benefits for clinically complex conditions and post-acute
care. This divestiture represents another step in our
transformation toward using our technical leadership and resources
more productively,'' said Matthew E. Monaghan, Chairman, President
and Chief Executive Officer, of Invacare Corporation.
''The added distribution and volumes this acquisition brings
will help us to leverage lower costs across our product portfolio
and deliver better value to our customers,'' said Stuart Straus,
President and Chief Executive Officer of Compass Health Brands.
''In addition, the ProBasics brand greatly enhances our ability to
meet the growing needs of competitive bid winners.''
Subject to certain post-closing adjustments and any
restructuring charges, Invacare preliminarily estimates it will
realize net proceeds of approximately $12.9 million, net of tax and
expenses. For the first six months ended June 30, 2016, net
external sales for Garden City Medical, Inc. were approximately
$18.2 million, and earnings before tax were approximately $1.3
million. These financials exclude intercompany sales of ProBasics
products and related profit at Garden City Medical, Inc., and other
Invacare entities.
ABOUT INVACARE
Invacare Corporation (NYSE: IVC), headquartered in Elyria, Ohio,
is a global leader in the manufacture and distribution of
innovative home and long-term care medical products that promote
recovery and active lifestyles. The company has 4,700
associates and markets its products in approximately 100 countries
around the world. For more information about the company and its
products, visit Invacare’s website at www.invacare.com.
ABOUT COMPASS HEALTH
Compass Health Brands, headquartered in Middleburg Heights,
Ohio, manufactures and distributes bath safety, personal care,
durable medical equipment, support surfaces, pressure prevention,
mobility, pain management, respiratory, health aids, and medication
compliance, serving both professional and consumer markets.
Professional brands include Meridian Medical, Roscoe Medical,
InTENSity and Viverity and are sold through a professional
independent dealer network. Consumer brands include Carex,
AccuRelief, Apex, Bed Buddy and TheraMed and are sold through drug
store chains, drug wholesalers, mass merchants, and grocery
retailers. For more information, visit www.compasshealthbrands.com.
This press release contains forward-looking statements within
the meaning of the ''Safe Harbor'' provisions of the Private
Securities Litigation Reform Act of 1995. Forward looking
statements are those that describe future outcomes or expectations
that are usually identified by words such as ''will,'' ''should,''
''could,'' ''plan,'' ''intend,'' ''expect,'' ''continue,''
''forecast,'' ''believe'' and ''anticipate,'' and include, for
example, any statement made regarding the company’s future results.
Actual results and events may differ significantly as a result of
risks and uncertainties, including the inability to estimate
transaction costs and expenses or post-closing adjustments, and
impact on the company’s lifestyle business of the Garden City
Medical divestiture and discontinuation of the ProBasics brand
offering by the company as well as the risks described from time to
time in the company's reports as filed with the Securities and
Exchange Commission. Except to the extent required by law, the
company does not undertake and specifically declines any obligation
to review or update any forward-looking statements or to publicly
announce the results of any revisions to any of such statements to
reflect future events or developments or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20160930005915/en/
Invacare CorporationLara Mahoney, 440-329-6393
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