AssuraMed announced it has signed a definitive agreement to acquire Invacare Supply Group, a division of Invacare Corporation (NYSE: IVC) for $150 million.
The deal is part of Invacare’s focus on its globalization strategy to harmonize core global product lines and reduce complexity within its business. For AssuraMed, a leader in wholesale and home-delivered medical supplies across the United States, this strategic purchase allows the company to strengthen its position as a leader in the medical supplies industry.
“We are thrilled to have ISG as a complement to our Independence Medical business,” said Michael B. Petras, AssuraMed Chief Executive Officer. “ISG’s strong position in the marketplace and focus on customer service are an excellent fit with our product portfolio and focus on customer solutions. This strategic acquisition builds on our strengths in providing disposable medical supplies to the chronic disease market. Our new combined customer base will benefit from enhanced distribution capabilities and services that we will be able to provide.”
For Invacare, the deal allows it to recede the complexity of its business and focus on its core product lines to expand globally said Gerald B. Blouch, Invacare President and Chief Executive Officer.
“I am proud of ISG’s many contributions, and I want to thank the many hard working and dedicated ISG associates, under the leadership of general manager Douglas Harper, for their commitment to our success,” Blouch said. “Our supplies business is respected in the industry, and we are confident that it will continue to flourish and provide customers the high-quality products and services they expect under AssuraMed’s leadership.”
The deal is expected to close in early 2013 and is subject to regulatory approval.
Written by John Yedinak