Invacare Corporation (NYSE: IVC) and AssuraMed announced today that they have signed a definitive agreement under which Invacare will sell Invacare Supply Group (ISG), its domestic medical supplies business, to AssuraMed for $150 million, subject to certain closing adjustments. This divestiture is consistent with Invacare's focus on its globalization strategy to harmonize core global product lines and reduce complexity within its business. For AssuraMed, a leader in wholesale and home-delivered medical supplies across the United States, this strategic purchase allows the company to strengthen its position as a leader in the medical supplies industry.
AssuraMed Chief Executive Officer Michael B. Petras, Jr., said, ``We are thrilled to have ISG as a complement to our Independence Medical business. ISG's strong position in the marketplace and focus on customer service are an excellent fit with our product portfolio and focus on customer solutions. This strategic acquisition builds on our strengths in providing disposable medical supplies to the chronic disease market. Our new combined customer base will benefit from enhanced distribution capabilities and services that we will be able to provide.''
Gerald B. Blouch, Invacare President and Chief Executive Officer, said, ``This divestiture represents a significant step forward for Invacare and it allows us to continue to reduce complexity in our business, focus on our core product lines and expand globally, with the long-term goal of returning operating margins back to high single digits.''
Blouch continued, ``I am proud of ISG's many contributions, and I want to thank the many hard working and dedicated ISG associates, under the leadership of general manager Douglas Harper, for their commitment to our success. Our supplies business is respected in the industry, and we are confident that it will continue to flourish and provide customers the high-quality products and services they expect under AssuraMed's leadership.''
The transaction, which is expected to close in early 2013, is subject to regulatory approval and other customary closing conditions.