Handicare will take an accessibility focus after it signed an agreement to divest Patient Handling Europe, including all Patient Handling operations outside North America, to Direct Healthcare Group.
The purchase price amounts to approximately £26.1m (€30m) on a cash and debt free basis with the transaction expected to close in May.
Patient Handling Europe offers medical devices that simplify patient transfers within the institutional and home care settings.
The business unit has 87 employees and sales of £23.6m (€27m) in 2019, corresponding to 11% of Handicare’s total sales during the same period.
Handicare explained how the divestment is a result of the strategic review announced in connection with the Q3 report 2019.
The review concluded that Handicare should focus on the development of the business unit Accessibility (stair lifts) and continue with the ongoing restructuring of Patient Handling North America with the aim to restore profitable growth.
The firm concluded that an increased focus on this business unit has the greatest potential to create future shareholder value and will allow accelerated organic growth through continued geographical expansion and development of new products.
Additionally, proceeds from the transaction will enable a more active M&A agenda.
Following the transaction, Accessibility (stairlifts) accounts for approximately 87% of Handicare Group Adjusted EBITDA (before group-wide expenses) based on 2019 earnings.
In the UK, Clare Brophy, Handicare’s executive commercial director, said: “I’m excited about the future for Accessibility and confident that the increased focus on our stairlifts business will enable us to emerge stronger from the coronavirus crisis.”
Adding: “There are opportunities for us to reach further and deeper into worldwide markets, as well to continue improving our product portfolio through acquisition and R&D activities.”
While Graham Ewart, CEO at Direct Healthcare Group, commented: “The acquisition of Handicare Patient Handling Europe represents a key strategic step in delivering our clinically proven, market-leading pressure care management and specialist seating portfolios into wider European markets presently serviced by Handicare.
“With the addition of Patient Handling Europe, we can encourage even safer, earlier mobilisations and recoveries across a broader patient population. This will continue DHG’s more than decade-old history of achieving better health outcomes and economic efficiencies for those who would otherwise be bedbound.”
AMP recently reported on Handicare’s virtual sales.
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