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Transworld Divests Three Subsidiaries

New York

Transworld Healthcare is selling certain assets of three of its U.S. subsidiaries - MK Diabetic Services, Respiflow and Transworld Ostomy - for $2 million in cash plus the book value of on-hand saleable inventory.

Officials did not divulge the name of the buyer.

Related to the purchase, the company, which provides unit-dose medications, medical supplies and nursing services, expected to record in the fourth quarter ended Sept. 30 a pretax charge of $16 million to $18 million. That is mostly for write-off of goodwill, officials said.

Transworld, which recorded a $7 million loss for the third quarter ended June 30, recently agreed to pay $10 million to the federal government to settle a qui tam lawsuit alleging Medicare fraud.

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