Invacare (NYSE:IVC) is hoping to narrow its focus and reduce its debt after divesting its Altimate Medical subsidiary for $23 million in cash.
Invacare sold the business to Rockwood Equity Partners, saying that "Altimate is a strong business, but it is outside of Invacare’s core North America/Home Medical Equipment product portfolio."
Altimate, which manufactures stationary standing assistance devices for use in rehabilitation settings, recorded about $8.9 million in revenue and $2.3 million in profits (before taxes and adjustments) in the 1st half of 2014.
Invacare estimates that its net proceeds from the deal amount to $21.7 million, which the company hopes to use to reduce some of the outstanding debt under its revolving credit facility.
Invacare has had a rough few quarters, marked by layoffs and other cost-reduction efforts. The Ohio-based company announced last month that it would fire about 150 employees and 40 temps from its North American home medical equipment and Asia/Pacific institutional products divisions, adding to the approximately 70 layoffs tied to the closing of the company’s London, Canada, manufacturing facility earlier this year.
IVC shares dropped 2.5% today to trade at $14.96 as of about 2:35 p.m. EST. The stock has lost 35.6% since the start of the year.
