Invacare corporation, Headquartered in Ohio at Elyria, is the international leader in the distribution and manufacture of long term and innovative home care medical products promoting active and recovery lifestyles. This company has at present 4900 associated and distributes its products to over hundred countries across the world.
The breaking news is that this Elyria based company has sold the businesses to let its focus completely on improving profitability in its core business, making patient beds, wheelchair, walkers and related other medical devices, as per a statement released by Matthew E. Monaghan, the CEO of this business.
The two businesses have formed a small portion of total revenue of Invacare. Dynamic medical systems LLC and Invacare Outcomes management LLC both generated sales of $7.2 million in the first quarter of 2015, while the broader company generated revenue of more than $289 during first quarter.
Invacare has been in a financial pressure lately. Regulatory issues have made the company to scale back wheelchair producing operations significantly at its Taylor street plant located in Elyria. Invacare has lost around $7.2 million in the first quarter, although it was a lift from a loss of around $18 million in the first quarter of 2014.
Invacare has told last week that it has sold its dynamic medical systems and Invacare outcomes management medical device rental businesses for an approximate $15.5 million. The terms of sale include six month duration within which Invacare will be selling products to the buyers of the rental businesses and some three year non-competition contracts with rental subsidiaries and their workers, said the Ohio-based company.
The two subsidiaries produced just a part of the total revenue of the company, producing sales of $7.2 million in the first quarter of this year relatively to the $289 million the last year. The company also told that the sale of their US rental businesses enables them to narrow their focus on developing profit in their core business, including manufacture, design and distribution of the medical devices. They also mentioned that they are glad to make this divestiture and they want to thank the complete rentals for contributing their service to Invacare, told the CEO.
In the last year, Invacare has dropped off its rehabilitation device subsidiary, called Altimate Medical for an approximate $23 million in the hope of reducing the debt of the company.