Arcadia sells off more DME locations
SOUTHFIELD, Mich. - Arcadia Resources continued shedding its DME business this month, selling its Florida and Colorado locations to Aerocare Holdings for $7.7 million.
The cash deal, announced Sept. 13, is the latest in a series of cost-cutting moves by the company.
In April, Arcadia announced plans to sell part of its DME business for $16.5 million, which many industry watchers suggested could mean the company needs cash (See HME News, April 2007).
In May, Arcadia sold $13 million in stock to a group of investors affiliated with Potomac Capital Management, and in July, the company restructured its business units and management, partially to achieve cost efficiencies.
In connection with Thursday's deal, Arcadia will retain the accounts receivable related to services provided at these sites prior to Aug. 16, totaling about $7 million.
Part of the proceeds will be used to reduce debt and other obligations by about $4.3 million.