Rockwood Equity Partners has acquired Altimate Medical from Invacare Corp. for about $23 million in cash. Altimate is a maker of stationary standing assistive devices for use in patient rehabilitation.
ELYRIA, Ohio–(BUSINESS WIRE)–Invacare Corporation (NYSE: IVC) announced today that it has completed the sale of Altimate Medical, Inc. (Altimate), its domestic manufacturer of stationary standing assistive devices for use in patient rehabilitation, to Rockwood Equity Partners for approximately $23,000,000 in cash, subject to a $1,000,000 escrow arrangement and further subject to certain post-closing adjustments.
Robert K. Gudbranson, Invacare Interim President and Chief Executive Officer, said, ”Altimate is a strong business, but it is outside of Invacare’s core North America/Home 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.”
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 $21,700,000, net of tax and expenses. Invacare will use the proceeds to reduce debt outstanding under its revolving credit facility. 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.
Founded in 1999, Rockwood Equity Partners is a private investment firm that is focused on investing out of its committed capital fund in lower middle market companies with revenues typically between $10 million and $100 million. Its approach is to partner with strong management teams and provide support and resources as they build their businesses. The firm is particularly interested in privately-owned companies in need of ownership transition and divisions of larger entities. For more information, visit www.rockwoodequity.com.
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 had approximately 5,400 associates as of June 30, 2014, and markets its products in approximately 80 countries around the world. For more information about the Company and its products, visit Invacare’s website at www.invacare.com.