By Melodie Warner
Invacare Corp. (IVC) agreed to sell its domestic medical
supplies business to AssuraMed for $150 million as part of its
plans to focus on its core product lines.
Invacare makes and distributes home and long-term-care medical
products. The company expects to complete the sale of Invacare
Supply Group in early 2013.
"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," said President and Chief Executive Gerald B.
Blouch.
Invacare reported a sharp drop in its third-quarter profit amid
increased regulatory and compliance costs and a 0.1% revenue
decline. Invacare Supply Group's sales increased 16% to $85.8
million.
Shares closed Thursday at $15.74 and were inactive premarket.
The stock has risen 2.9% since the start of the year.
AssuraMed is a medical-supply distributor based in Twinsburg,
Ohio. Its primary shareholders include funds managed by
private-equity firms Clayton, Dubilier & Rice and Goldman Sachs
Group Inc.'s (GS) GS Capital Partners.
Write to Melodie Warner at melodie.warner@dowjones.com
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