Invacare to use revolver to help fund WP Domus acquisition

By Sara Rosenberg

New York, Aug. 2 - Invacare Corp. plans to use availability under its revolving credit facility to help fund the acquisition of WP Domus GmbH for €190 million, or about $230 million, company officials said in a conference call Monday.

The current interest rate on the revolver is slightly lower than 2.5%, officials said during the call.

Debt to total capitalization will be about 40% following the transaction.

"Given the potential of the additional sales and sourcing benefits, the acquisition of Domus should add between 25 to 30 cents to earnings in 2005. In the remainder of 2004, the acquisition should be immediately accretive. However, due to the timing of regulatory approval, we expect minimal addition to EPS in 2004," chairman and chief executive officer Malachi Mixon III said in a company news release.

The acquisition is subject to German and Norwegian regulatory approvals.

Invacare is an Elyria, Ohio, manufacturer and distributor of home care and long-term care medical products.

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