Medical Action Industries (NSDQ:MDCI) said it closed the $79 million sale of its Medegen Medical Products subsidiary and parts of its patient care business to Inteplast Group’s Medira Inc.
"I would like to thank all of the talented and dedicated employees of Medical Action and the patient care business unit that have committed significant time to ensure a smooth transition of this business to Inteplast. I am confident that the patient care business team will continue to provide quality products and build on the relationships Medical Action has developed over the years with our trusted partners in the healthcare community," CEO Paul Meringolo said in prepared remarks.
Proceeds from deal, 1st announced in March at a value of $75 million, are slated to be used to pay down some $40 million in debt, according to a press release, with the remainder pegged for working capital.
"The completion of this transaction has significantly strengthened our balance sheet and will facilitate our pursuit of synergistic business opportunities. We look forward to continuing to build stockholder value through the optimization of our remaining business units and by providing quality products and innovative solutions to enhance the patient experience," Meringolo added.
