Investors applaud Invacare's Domus acquisition
By HME News Staff
Updated Sun August 8, 2004
August 9, 2004
ELYRIA, Ohio - Invacare's stock enjoyed a 12% bounce in value after the announcement last Monday that it had paid $230 million for WP Domus, a European-based holding company that makes power add-on products, bath lifts and walking aids. By the end of the week, the bounce had deflated by half.
Domus is forecasting total 2004 sales of $116 million at recent exchange rates. Invacare plans to run the three Domus divisions - Alber, Aquatec and Dolomite - as independent operating units.
“It's perhaps unsurprising that the company's market value got a bump [last week],” Dave Marino-Nachison wrote in the Motley Fool, a popular Web site for investors. “Anecdotally, at least, it seems that acquisitions of privately held companies tend to mean a better same-day pop for their public acquirers because there's less information for the public to second-guess and no arbitrage opportunity for traders. Still, this deal holds significant business promise as well.”
Domus is forecasting total 2004 sales of $116 million at recent exchange rates. Invacare plans to run the three Domus divisions - Alber, Aquatec and Dolomite - as independent operating units.
Comments