Invacare Corporation Announces Sale of Invacare Rentals
03 July 2015 - 2:18AM
Business Wire
Invacare Corporation (NYSE: IVC) announced today that it has
completed the sale of its United States medical device rentals
businesses for long-term care facilities (Invacare Outcomes
Management, LLC, and Dynamic Medical Systems, LLC) for
approximately $15,500,000 in cash, subject to certain post-closing
adjustments.
Matthew E. Monaghan, Chairman, President and Chief Executive
Officer, said, ''The sale of our United States rentals businesses
allows us to narrow our focus on improving profitability in our
core business, including the design, manufacture and distribution
of medical devices. We are pleased to complete this divestiture,
and I want to thank the entire rentals team for their contributions
to Invacare.''
Subject to certain post-closing adjustments and any
restructuring charges, Invacare preliminarily estimates it will
realize net proceeds from the sale of the rentals businesses of
approximately $13.7 million, net of tax and expenses. For the three
months ended March 31, 2015, net sales for the rentals
businesses were approximately $7.2 million, and loss before tax and
any pro forma adjustments was approximately $0.6 million.
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 currently has
4,900 associates and markets its products to over 100 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: legal actions, including
adverse judgments or settlements of litigation or claims in excess
of available insurance limits; 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; adverse effects of
regulatory or governmental inspections of Company facilities and
governmental enforcement actions; product liability or warranty
claims; product recalls, including more extensive recall experience
than expected; 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;
the Company's inability to satisfy its liquidity needs in light of
monthly borrowing base movements and daily cash needs of the
business under its new asset-based lending credit facility; 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 of 2010
(such as, for example, the impact on the Company of the excise tax
on certain medical devices, and the Company's ability to
successfully offset such impact); ineffective cost reduction and
restructuring efforts or inability to realize anticipated cost
savings or achieve desired efficiencies from such efforts; delays,
disruptions or excessive costs incurred in facility closures or
consolidations; 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.
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Invacare CorporationLara Mahoney, 440-329-6393
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