Invacare (Elyria, Ohio) announced that it had sold its medical supply business, the Invacare Supply Group (ISG) to AssuraMed, a healthcare products distributor based in Twinsburg, Ohio. According to a press release from the company, the division was sold for approximately $150.8 million in cash. Once expenses for the transaction are paid, Invacare expects to net $146.6 million from the sale.
According to information from the company, the sale of its ISG division is in alignment with its core mission. The company plans to expand its focus on its core product line in the future. Funds from the sale of the division will be used to reduce its outstanding debt. In the press release, the company also stated that it is in the process of renovating its Taylor Street product facilities, located in Elyria, Ohio.
The company will file an SEC Form 8-K with unaudited pro forma financial statements on January 22nd, 2013. The Form 8-K will contain information regarding the sale of its ISG division.
Invacare is a global manufacturer of long-term care products for seniors and those with disabilities. Its products are designed to promote recovery and improved mobility. The company currently has 6,000 employees and markets its long-term care products in 80 different countries around the globe.