Invacare divests rentals business
ELYRIA, Ohio – Invacare has sold its device rentals business for long-term care facilities.
The business, comprised of Invacare Outcomes Management and Dynamic Medical Systems, sold for $15.5 million in cash. The buyer was not disclosed.
The deal will allow Invacare, which has struggled under the weight of a consent decree with the Food and Drug Administration, to refocus on its core businesses, says Matthew Monaghan, president and CEO.
''The sale of our United States rentals businesses allows us to narrow our focus on improving profitability in our core business, including the design, manufacture and distribution of medical devices,” he said in a press release.
Monaghan took the reins April 1, and announced a 90- to 100-day plan to begin a turnaround of the North America HME business.
The rentals businesses had net sales of approximately $7.2 million for the first quarter of 2015.