Invacare Corporation Announces Sale of Altimate Medical to Rockwood Equity Partners
30 August 2014 - 7:25AM
Business Wire
Invacare Corporation (NYSE: IVC) announced today that it has
completed the sale of Altimate Medical, Inc. (Altimate), its
domestic manufacturer of stationary standing assistive devices for
use in patient rehabilitation, to Rockwood Equity Partners for
approximately $23,000,000 in cash, subject to a $1,000,000 escrow
arrangement and further subject to certain post-closing
adjustments.
Robert K. Gudbranson, Invacare Interim President and Chief
Executive Officer, said, ''Altimate is a strong business, but it is
outside of Invacare's core North America/Home Medical Equipment
product portfolio. I am grateful to the associates at Altimate for
the contributions that they have made to Invacare. The net proceeds
from this divestiture give us the opportunity to strengthen our
balance sheet through the continued reduction of debt.''
Subject to the escrow arrangement and certain post-closing
adjustments, Invacare preliminarily estimates that it will realize
net proceeds from the sale of the Altimate business of
approximately $21,700,000, net of tax and expenses. Invacare will
use the proceeds to reduce debt outstanding under its revolving
credit facility. For the six months ended June 30, 2014, net
sales for the Altimate business were approximately $8,937,000 and
earnings before tax before any pro forma adjustments were
approximately $2,312,000.
Founded in 1999, Rockwood Equity Partners is a private
investment firm that is focused on investing out of its committed
capital fund in lower middle market companies with revenues
typically between $10 million and $100 million. Its approach is to
partner with strong management teams and provide support and
resources as they build their businesses. The firm is particularly
interested in privately-owned companies in need of ownership
transition and divisions of larger entities. For more information,
visit www.rockwoodequity.com.
Invacare Corporation (NYSE:IVC), headquartered in Elyria, Ohio,
is the global leader in the manufacture and distribution of
innovative home and long-term care medical products that promote
recovery and active lifestyles. The Company had approximately
5,400 associates as of June 30, 2014, and markets its products in
approximately 80 countries around the world. For more information
about the Company and its products, visit Invacare's website at
www.invacare.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. Terms such as “will,”
“should,” “could,” “plan,” “intend,” “expect,” “continue,”
“believe” and “anticipate,” as well as similar comments, denote
forward-looking statements that are subject to inherent
uncertainties that are difficult to predict. Actual results and
events may differ significantly from those expressed or anticipated
as a result of risks and uncertainties, which include, but are not
limited to, the following: ineffective cost reduction and
restructuring efforts or inability to realize anticipated cost
savings from such efforts; delays, disruptions or excessive costs
incurred in facility closures or consolidations; compliance costs,
limitations on the production and/or distribution of the Company's
products, inability to bid on or win certain contracts, unabsorbed
capacity utilization, including fixed costs and overhead, or other
adverse effects of the FDA consent decree of injunction; any
circumstances or developments that might further delay or adversely
impact the results of the final, most comprehensive third-party
expert certification audit or FDA inspection of the Company's
quality systems at the Elyria, Ohio, facilities impacted by the FDA
consent decree, including any possible requirement to perform
additional remediation activities or further resultant delays in
receipt of the written notification to resume operations (which
could have a material adverse effect on the Company's business,
financial condition, liquidity or results of operations); the
failure or refusal of customers or healthcare professionals to sign
verification of medical necessity (VMN) documentation or other
certification forms required by the exceptions to the FDA consent
decree; possible adverse effects of being leveraged, including
interest rate or event of default risks, including those relating
to the Company's financial covenants under its credit facility
(particularly as might result from the impacts associated with the
FDA consent decree); the Company's inability to satisfy its
liquidity needs, including efforts to negotiate a new bank
agreement, or additional costs to do so; adverse changes in
government and other third-party payor reimbursement levels and
practices both in the U.S. and in other countries (such as, for
example, more extensive pre-payment reviews and post-payment audits
by payors, or the Medicare National Competitive Bidding program);
impacts of the U.S. Affordable Care Act that was enacted in 2010
(such as, for example, the impact on the Company of the excise tax
on certain medical devices, which began on January 1, 2013, and the
Company's ability to successfully offset such impact); legal
actions, governmental enforcement actions, regulatory proceedings
or the Company's failure to comply with regulatory requirements or
receive regulatory clearance or approval for the Company's products
or operations in the United States or abroad; product liability or
warranty claims; product recalls, including more extensive recall
experience than expected; exchange rate or tax rate fluctuations;
inability to design, manufacture, distribute and achieve market
acceptance of new products with greater functionality or lower
costs or new product platforms that deliver the anticipated
benefits; consolidation of health care providers; lower cost
imports; uncollectible accounts receivable; difficulties in
implementing/upgrading Enterprise Resource Planning systems; risks
inherent in managing and operating businesses in many different
foreign jurisdictions; decreased availability or increased costs of
materials which could increase the Company's costs of producing or
acquiring the Company's products, including possible increases in
commodity costs or freight costs; heightened vulnerability to a
hostile takeover attempt arising from depressed market prices for
Company shares; provisions of Ohio law or in the Company's debt
agreements, shareholder rights plan or charter documents that may
prevent or delay a change in control, 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.
Invacare CorporationLara Mahoney, 440-329-6393
Invacare (NYSE:IVC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Invacare (NYSE:IVC)
Historical Stock Chart
From Apr 2023 to Apr 2024