Invacare Corp 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 CEO, says in a release, ”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.