Invacare, an Elyria, Ohio-based manufacturer of medical products, said it closed a $150 million cash deal
to sell its domestic medical-supplies business to AssuraMed.
The company will retain its equipment business, which includes products such as wheelchairs and respiratory equipment, according to an Invacare spokeswoman.
The Food and Drug Administration had announced last month that Invacare and two of its executives had signed a consent decree
to stop manufacturing and distributing wheelchairs and wheelchair components at its headquarters and at a wheelchair-manufacturing facility, also in Elyria. The consent decree does not affect other Invacare facilities.
The deal with AssuraMed, a Twinsburg, Ohio-based supplier and wholesaler of disposable medical products, was also announced
in December. Invacare's medical-supplies business
includes diabetes test strips, catheters and incontinence products.
“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 Invacare President and CEO Gerald Blouch in a news release.
Invacare said in the news release that the proceeds of the sale will be used to reduce debt, an action it believes will then put the company in a better position to make future acquisitions after it corrects quality systems violations cited in the consent decree.