INVACARE ACQUIRES LOW AIR LOSS THERAPY MANUFACTURER GSI, INC.
ELYRIA, Ohio, July 13 /PRNewswire/ -- Invacare Corporation (NASDAQ-NMS: IVCR), the world's leading manufacturer and distributor of home medical equipment, today announced the acquisition of GSI, Inc. GSI is a leading-edge manufacturer of low air loss therapy systems for use in both the home and institutional settings. Terms of the transaction were not disclosed. Low air loss (LAL) therapy is a modality used to prevent or aid in the treatment of pressure sores, decubitus ulcers (often called bed sores), severe burns and other skin-related ailments. LAL therapy uses specialized beds, mattresses or overlays that are designed to move air through the surface on which the patient is lying in order to reduce heat and moisture buildup. GSI currently manufactures five different mattress models designed to convert the home care bed into a low air loss bed. Unlike many LAL therapy products, GSI units are quite portable and easy to install for in-home use. Based near Carmel, N.Y., GSI has been designing and manufacturing LAL therapy systems since 1986, including a recently introduced innovative LAL rotational therapy system. With annual sales of $4 to $5 million, GSI should immediately contribute to Invacare's earnings. GSI staff and operations will remain at the current facility. A. Malachi Mixon III, Invacare's chairman, president and chief executive officer, called GSI, "An excellent addition to our foam- positioning product line and our industry-leading line of home care beds." The acquisition expands Invacare's presence in the $100 million market for pressure-reduction products and places it solidly in the $400 million market for products designed for pressure relief and pressure- sore treatment. Mixon added, "We have followed the development of this therapy closely for several years and feel its clinical viability in the home care setting is now widely accepted in the medical community. With Invacare's financial resources and unmatched distribution capabilities, we are optimistic about the growth potential for this product line. Invacare will not compete with dealers, but will capitalize on its strategic partnership with its valued network of home medical equipment dealers for distribution of GSI products into both home and institutional settings." Decubitus ulcers are a major problem for people with severe disabilities such as quadriplegia and illnesses like cancer and advanced cases of AIDS. A five-year study by Rancho Los Amigos Hospital revealed that pressure sores often require extended hospitalization at costs of thousands of dollars a day in sophisticated and specialized treatment programs. GSI's systems enable the patient to receive the same clinical outcome in the less costly and more comfortable home setting. Invacare Corporation is the world's leading manufacturer and distributor of home medical equipment with 1992 sales in excess of $305 million. Invacare's corporate headquarters are in Elyria, Ohio, and its product lines include manual and power prescription wheelchairs, standard wheelchairs, wheelchair seating and positioning products, home care beds, home respiratory equipment, and a complete line of patient aids such as walkers, canes, crutches, bed-side commodes, bath safety products and motorized scooters. In addition to the newly acquired GSI, Inc. facility near Carmel, N.Y., Invacare has manufacturing locations in California, Canada, Florida, France, Great Britain, Germany, Mexico, New Zealand, Ohio, and Texas. Products are distributed worldwide through 10,000 independent dealer locations. -0- 7/13/93 /CONTACT: David T. Williams of Invacare Corporation, 216-329-6989/ (IVCR)
CO: Invacare Corporation; GSI, Inc. ST: Ohio, New York IN: MTC SU: TNM
KL -- CL005 -- 0726 07/13/93 08:28 EDT
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|Date:||Jul 13, 1993|
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