Everest & Jennings Agrees to Sell German Subsidiary
Everest & Jennings International Ltd., a Camarillo-based wheelchair maker, said it has agreed to sell its Ortopedia GmbH unit in Germany in a deal valued at about $58 million.
The buyer is a consortium led by Citicorp Venture Capital and includes County NatWest Ventures Ltd. and Ortopedia’s management. The proposed sale is part of Everest & Jennings’ effort to cut its debt load.
Ortopedia’s annual sales of about $83 million are more than a third of Everest & Jennings’ total annual sales. Everest & Jennings said it expects to report about a $6-million gain on the sale.
The agreement calls for the buying group to assume some of Ortopedia’s debt and provides for Everest & Jennings to retain a 15% interest in Ortopedia, with an option to increase the stake to 20% under certain circumstances.
The sale is conditioned on approval by the German government and is expected to close by the end of this month.