If you know me, you probably know that I used to own a hospital bed manufacturing company.
On April 15, 1996 I sold my company to two local business men who ran it until 2003 at which time they sold the
home care and nursing home division to Invacare. These original purchasers retained the hospital bed portion and it continues to flourish as
CHG (Carroll Hospital Group) Hospital Beds and is still located here in London, Ontario.
Invacare Buys Carroll Healthcare In London Canada.
ELYRIA, Ohio--(BUSINESS WIRE)--Aug. 12, 2003--Invacare Corporation (NYSE:IVC) announced today that the company has acquired Carroll Healthcare, Inc., a leading manufacturer of beds and furniture for the long-term care market. Terms of the cash purchase are not being disclosed. Carroll Healthcare is located in London, Ontario, Canada and will be operated as a part of Invacare's Continuing Care Group ("ICCG"). Carroll will retain its own manufacturing and administration as well as its current sales channel and will continue its mission of providing high quality beds and furniture for the long-term care industry. “We are extremely pleased to add Carroll's industry leading product offerings in beds and furniture to ICCG's broad offering of products. Carroll's products give Invacare market leadership with brand recognition.” "With the combination of Carroll and ICCG, we are very pleased to become the market leader in furniture and medical equipment to the long-term care industry in North America," said A. Malachi Mixon, III, chairman and chief executive officer. "The addition of Carroll will help Invacare continue toward its goal of reaching $2 billion in sales in 2006, both through internal growth as well as through acquisitions which will strengthen Invacare's market leadership in both homecare and long term care." The acquisition of Carroll Healthcare is expected to be immediately accretive to earnings. Also commenting on the acquisition, Charley Wallace, vice president and general manager of ICCG, said, "We are extremely pleased to add Carroll's industry leading product offerings in beds and furniture to ICCG's broad offering of products. Carroll's products give Invacare market leadership with brand recognition." Invacare Corporation (NYSE:IVC), headquartered in Elyria, Ohio, is the global leader in the manufacture and distribution of innovative home and long-term care medical products that promote recovery and active lifestyles. The company has 5,300 associates and markets its products in 80 countries around the world. For more information about the company and its products, visit Invacare's website at www.invacare.com.
Today it was announced the Invacare portion of the company would be closing and bed production moved to an unspecified manufacturer. Associated cabinetry will be produced at Invacare's cabinet plant in Florida.
Invacare Announces Closure of London, Canada Manufacturing Facility
ELYRIA, Ohio--(BUSINESS WIRE) Feb. 12, 2014--Invacare Corporation (NYSE: IVC) today announced its decision to close its London, Canada manufacturing facility by mid-2014. The closure of this plant, which produces long-term care beds and case goods, is part of the Company’s long-term strategy to remain cost competitive by optimizing its global supply chain. Production of case goods currently manufactured in London will be transferred to the Invacare plant in Sanford, Florida. The long-term care beds production in London will be outsourced to a third-party with established FDA-registered manufacturing capabilities around the world. The third-party manufacturer has a significant focus on medical devices, including acute care bed production. ''While we regret the impact that this decision will have on our London associates, we believe this is an important step for the long-term health of the Company. We expect that this closure will result in long-term cost savings that will enhance our ability to compete in the healthcare market. The company to which we are outsourcing our long-term care bed production has a strong quality system, established competence in acute care bed production, a very efficient operation and advanced information systems. Taking advantage of their size and proven systems allows Invacare to reduce complexity within its long-term care business,'' said Gerald B. Blouch, President and Chief Executive Officer. The Company expects to incur project-related expenses of at least $3.5 million on a pre-tax basis across the second and third quarter of 2014. At this time, those costs are estimated to include approximately $1.4 million in one-time cash restructuring charges, approximately $1.1 million in non-cash restructuring charges and approximately $1.0 million in operating expenses during the closure. The Company expects minimal benefits in 2014, but it expects annualized savings of up to $2.7 million starting in 2015. Invacare Corporation (NYSE:IVC), headquartered in Elyria, Ohio, is the global leader in the manufacture and distribution of innovative home and long-term care medical products that promote recovery and active lifestyles. The Company currently has 5,400 associates and markets its products in approximately 80 countries around the world. For more information about the Company and its products, visit Invacare's website at www.invacare.com. The news of my former company's demise was disturbing and I truly feel for the 70 or so workers that will be displaced although I no longer have any financial ties to the old company. All of my family worked at Carroll Healthcare at some point so there was lingering emotional ties and a feeling of sadness when we heard about the closing.
This is yet another casualty in the ongoing deterioration of Canadian manufacturing. In my humble opinion, there are a couple of reasons we are losing all our industry.
If our governments keep pushing for more and more "green" initiatives, like solar and wind power that drive up our energy costs, we will end up with NO industry. The air and water will be cleaner but our province will be completely broke. (if not already) We in London have lost General Motors, Caterpillar, and a dozen more smaller manufacturers in the last few years. But God knows, it's clean here.
Shortly after I sold the company Carroll Healthcare employees joined the huge and powerful Canadian Auto Workers Union. (CAW) (Canadians against work?) At the time I remember thinking this will likely do them in. I think it was no coincidence that the above announcement was made one day before the union (now called Unifor) was to settle negotiations and sign a new contract. When will Canadian workers learn that they cannot bully their big American corporate owners?
The above video was the local TV broadcast on the six o'clock news where I learned of the closure. In a future posting I will try to put up some of the memorabilia I have saved from my dear old company as well as a more personal history of the lead-up to the 1996 sale of the firm.
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