Medical Action To Sell Medegen, Some Other Assets Of Patient Care Business Unit

(RTTNews) - Medical Action Industries Inc. (MDCI) announced that it agreed to sell its Medegen Medical Products, LLC subsidiary and certain other assets of its Patient Care business unit to Medira Inc., an affiliate of Inteplast Group, Ltd., for approximately $75 million, subject to certain purchase price adjustments.

The transaction is expected to close upon receipt of the required regulatory approvals and the satisfaction of other closing conditions agreed to by the parties.

The company anticipates completion of these regulatory approvals and closing conditions within three to four months.

The company said it plans to use the proceeds from the sale, net of tax and certain closing adjustments, to pay off term loan obligations under its existing credit facility and for working capital to support future growth in its business.