Invacare offloads ProBasics
ELYRIA, Ohio – Invacare has sold a subsidiary that sources and distributes primarily single-use products under ProBasics by PMI to Compass Health Brands for about $13.8 million in cash, the company announced on Sept. 30.
The ProBasics value-oriented line of products no longer fits with Invacare’s strategy to focus on solutions that bring greater benefits for clinically complex conditions and post-acute care, the company said in a press release.
“This divestiture represents another step in our transformation toward using our technical leadership and resources more productively,” said Matthew Monaghan, chairman, president and CEO.
Invacare subsidiary Garden City Medical does business as PMI and Pinnacle Medsource.
For Middleburg Heights, Ohio-based Compass Health Brands, a value-oriented line of products to complement premium products from its Meridian, Roscoe and Viverity brands was just what the company was looking for.
“The acquisition allows Compass to achieve greater volumes and efficiencies to deliver better value to all of our customers,” said Stuart Straus, president and CEO. “In addition, the ProBasics brand greatly enhances our ability to offer better solutions to competitive bid winners and exceed expectations of all of our customers with more choice and value.”
Subject to certain post-closing adjustments and any restructuring charges, Invacare estimates the sale of Garden City Medical will add about $12.9 million in net proceeds. Garden City Medical had net external sales of about $18.2 million and earnings before taxes of about $1.3 million for the first six months of this year.
Last year, Invacare sold Invacare Outcomes Management and Dynamic Medical Systems, its medical device rentals business for long-term care facilities, for $15.5 million in cash.