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Preliminary Valuation
Based on the information reviewed to date, Azurite is prepared to acquire 100% of the stock of certain North American subsidiaries of Invacare, as set forth in more detail in Appendix A (collectively, the “Entities”) for a purchase price of [***] plus the assumption of certain supplier trade payables, not to exceed [***]. [***]. This preliminary valuation assumes the transaction would be structured on a cash-free and debt-free basis and would include, or adjust for, a mutually agreed upon level of net working capital. [***]. Azurite will provide an equity line of credit for incremental needs of the North American operations. This preliminary valuation is subject to our satisfactory completion of strategic, financial, operational, quality, regulatory, and legal due diligence of the Company.
Transaction Structure and Consideration
It is anticipated that Azurite would form a wholly owned acquisition entity, equipped with the necessary capital to finance the purchase of the stock of the Company. We are also open to discussing alternative acquisition structures with the Company.
Azurite and its strategic partners would pay the purchase price in cash, subject to a commercially reasonable escrow holdback amount.
For the avoidance of doubt and while we will seek the optimal capital structure for the purpose of this transaction, Azurite’s ability to transact does not depend on any third-party debt financing and, our final offer will not be subject to any financing condition, but will be fully backed by equity capital.
Due Diligence
Azurite has a deep understanding of Invacare and has performed considerable diligence to date but needs to update our understanding of post-restructuring events and status. Azurite and its partners will quickly and efficiently continue to perform significant substantial strategic, financial, operational, and legal due diligence.
Accordingly, Azurite and its partners have compiled an initial document request list that includes financial and non-financial requests and, in particular, detailed reconciliations of budget to actual activity for the quarter ended March 31, 2024, and the latest set of financial projections. Our internal and external due diligence professionals (accounting, tax, benefits, quality, regulatory, legal, environmental, information technology, and insurance) are prepared to move forward promptly to continue our work, with a target of completing due diligence within 30 to 60 days subjected to timely receipt of requested diligence information.
External Advisors
Azurite intends to engage third-party professionals such as attorneys, accountants and insurance and benefits professionals to assist us in our evaluation of the risks and opportunities.
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Azurite Management LLC | | 25101 Chagrin Blvd. Suite 330 | | Cleveland, OH 44122 |