Invacare, an Elyria, Ohio-based manufacturer and distributor of home and long-term care medical products, has completed the sale of its Invacare Supply Group (ISG) medical supplies business to AssuraMed, a medical supply distributor based in Twinsburg, Ohio, for a purchase price of approximately $150.8 million in cash.
Invacare estimates net proceeds from the sale of approximately $146.6 million, net of expenses.
This transaction is consistent with Invacare's globalization strategy, allowing the company to focus on its core equipment product lines. In line with its prior announcement of the transaction, Invacare intends to use the proceeds from the sale to reduce debt outstanding under its revolving credit facility. Invacare expects that this will better position it to accelerate new product development with selective acquisitions after it has completed its previously announced quality systems remediation at its corporate and Taylor Street manufacturing facilities in Elyria, Ohio.
Invacare filed a Form 8-K containing unaudited pro forma condensed combined financial statements with the Securities and Exchange Commission on January 22, 2013, which will reflect the effects of the disposition of ISG.