Invacare (NYSE:IVC) said today it closed its manufacturing facility in Suzhou, China as it continues along the 2nd phase of a strategic transformation.
The Elyria, Ohio-based company said that production from the facility has been transferred to operations located “closer to its regional customers,” according to a press release.
“The Suzhou facility has been an important part of our manufacturing network primarily serving the North America and Europe markets. However, optimizing our global infrastructure is an essential part of our becoming a more sustainably profitable business. We are focused on having the right number of facilities in the right locations to better meet the needs of our customers. We will continue to serve the China market through our distributor partners,” prez & CEO Matthew Monaghan said in a press release.
Invacare said it expects the closure will generate an incremental $4 million in annualized pre-tax savings in its North America home medical equipment segment. The company said it expects to incur a $3 million restructuring charge for the segment in the 2nd quarter of this year.
The company said that its electronics subsidiary Dynamic Controls will continue to have a manufacturing site in the area.
Earlier this month, Invacare priced an upcoming offering of convertible notes, lifting it from a previously announced $100 million to $105 million aggregate principal amount.
In the round, Invacare will offer $105 million in convertible senior notes due 2022 in a private offering to institutional buyers. Final terms on the notes will be determined at pricing, Invacare said, offering that the notes will not bare interest and will mature on June 1, 2022.
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