Invacare Completes Altimate Medical Sale to Rockwood Equity
Invacare announced it completed the sale of Altimate Medical, its domestic manufacturer of stationary standing assistive devices for use in patient rehabilitation, to Rockwood Equity Partners for approximately $23 million in cash, subject to a $1 million escrow arrangement and further subject to certain post-closing adjustments.
Invacare will use the proceeds to reduce debt outstanding under its revolving credit facility.
Subject to the escrow arrangement and certain post-closing adjustments, Invacare preliminarily estimates that it will realize net proceeds from the sale of the Altimate business of approximately $21.7 million, net of tax and expenses. For the six months ended June 30, 2014, net sales for the Altimate business were approximately $8,937,000 and earnings before tax before any pro forma adjustments were approximately $2,312,000.
Robert K. Gudbranson, Invacare interim president and CEO, said, “Altimate is a strong business, but it is outside of Invacare’s core North AmericaHome Medical Equipment product portfolio. I am grateful to the associates at Altimate for the contributions that they have made to Invacare. The net proceeds from this divestiture give us the opportunity to strengthen our balance sheet through the continued reduction of debt.”
Invacare, headquartered in Elyria, OH, is a global manufacturef and distributor of innovative home and long-term care medical products that promote recovery and active lifestyles.
Rockwood Equity Partners is a private investment firm focused on investing out of its committed capital fund in lower middle market companies with revenues typically between $10 million and $100 million.