Invacare announced that it has completed the sale of its subsidiary, Garden City Medical, 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 $138m 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.
Invacare, 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.