Invacare Corporation (NYSE: IVC) announced today that it has completed the sale of its Invacare Supply Group (ISG) medical supplies business to AssuraMed of Twinsburg, Ohio, a leader in wholesale and home-delivered medical supplies across the United States, for a purchase price of approximately $150.8 million in cash, which is subject to final post-closing adjustments. 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, the Company intends to use the proceeds from the sale to reduce debt outstanding under its revolving credit facility. The Company 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.
The Company expects to file a Form 8-K containing unaudited pro forma condensed combined financial statements with the Securities and Exchange Commission on Tuesday, January 22, 2013, which will reflect the effects of the disposition of ISG.
About Invacare Corporation
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 has 6,000
associates and markets its products in approximately 80 countries around
the world. For more information about Invacare and its products, visit
Invacare's website at www.invacare.com.
Invacare Forward-Looking Statements
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, are forward-looking in nature 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: compliance costs, limitations on the design, production
and/or distribution of Invacare's products, inability to bid on or win
certain contracts, or other adverse effects of the FDA consent decree of
injunction; unforeseen circumstances that might delay or adversely
impact the results of the third party expert certification audits or FDA
inspections of Invacare's quality systems at the impacted Elyria, Ohio,
facilities; the failure or refusal of customers or healthcare
professionals to sign necessary certification forms required by the
exceptions to the consent decree; 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 covering nine metropolitan
statistical areas that started in 2011 and an additional 91 metropolitan
statistical areas beginning in July 2013), impacts of the U.S.
Affordable Care Act that was enacted in 2010 (such as, for example, the
expected annual impact on Invacare of the excise tax beginning in 2013
on certain medical devices and Invacare's ability to successfully offset
such impact); legal actions, regulatory proceedings or Invacare's
failure to comply with regulatory requirements or receive regulatory
clearance or approval for Invacare's products or operations in the
United States or abroad; product liability claims; 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 of Invacare's globalization strategy; 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; ineffective cost reduction and
restructuring efforts; potential product recalls; possible adverse
effects of being leveraged, including interest rate or event of default
risks (particularly as might result from impact of the FDA consent
decree); decreased availability or increased costs of materials which
could increase Invacare's costs of producing or acquiring Invacare'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 Invacare'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 Invacare's reports as filed with
the Securities and Exchange Commission. Except to the extent required by
law, we do not undertake and specifically decline 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 Corporation
Lara Mahoney, 440-329-6393
Director of
Investor Relations and Corporate Communications
or
AssuraMed
Kevin
Gehrt, 330-963-6998 Ext: 3210
Vice President - Human Resources &
Communications
media@assuramed.com