Sunrise Completes Refinancing, Finalizes Split with DeVilbiss

MALSH, Germany, and LONGMONT, Colo. — After releasing details March 26 of its ongoing plan to become the nation's premium mobility product source, Sunrise Medical reported it has successfully refinanced its existing senior secured credit facilities with the issuance of a new long-term senior secured term loan. In connection with the refinancing, Sunrise simultaneously announced the official separation of DeVilbiss Healthcare, its respiratory and sleep therapy division, into an independent company effective April 2.

According to a release, the refinancing caps a strong year for Sunrise in which the company reestablished its growth profile under Thomas Rossnagel, who was appointed president and CEO in May 2009. Additionally, Sunrise has recently launched four new products including the Q7 custom wheelchair line.

"This financing is an important and exciting step for Sunrise as we continue to execute our strategic growth plans," Rossnagel said. "The refinancing of our senior secured facilities leaves us in a much stronger financial position to fund growth. It also allows Sunrise to pursue acquisitions in both Europe and North America. Our premium products and services strategy will help in driving further growth in our business and delivering the highest quality products to our customers around the world."

In conjunction with the refinancing, DeVilbiss Healthcare, Somerset, Pa., has officially become an independent company. While DeVilbiss has operated as a separate division since July 2007, the refinancing will allow the company to stand alone as its own entity with no debt and separate long-term financing.

"Today, we begin a new and exciting chapter in our 125-year history," Alan Panzer, president and CEO of DeVilbiss, said in a company statement, adding that DeVilbiss' capital structure will also give it an "opportunity to aggressively evaluate acquisition opportunities both in Europe and in North America."

"Our strategy is to focus on our heritage of serving customers with the highest quality, innovative products in respiratory, sleep therapy and other adjacencies," Panzer continued. "We have already strengthened our company with new highly regarded product launches in sleep, expanded our sales force and revamped our supply chain to provide our customers with the highest quality products."

Sunrise Medical will continue to provide specific shared services for an interim period to ensure a smooth separation for customers globally.