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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
March 1, 1995
SUNRISE MEDICAL INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
0-12744 95-3836867
(Commission File Number) (I.R.S. Employer Identification No.)
2382 Faraday Avenue, Suite 200
Carlsbad, California 92008
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code
(619) 930-1500
Exhibit Index on Page 2 Page 1 of 6
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Item 5. OTHER EVENTS.
On March 1, 1995 Sunrise Medical Inc. ("Sunrise" or the "registrant"),
announced that it has signed a definitive agreement to acquire the Corona
Group of Tours, France. The total purchase price of 206 million French
francs includes cash of 175 million French francs and Sunrise common stock
valued at 31 million French francs. The cash portion of the purchase price
will be provided from the registrant's existing credit facility which was
last amended and restated on August 14, 1994.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
a) n/a
b) n/a
c) Exhibits
The following exhibits are filed with or incorporated by reference in
this report:
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Sequentially
Exhibit Numbered
Number Description Pages
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<C> <S> <C>
10 First Amended and Restated Credit Agreement
dated August 17, 1994 among Sunrise Medical Inc.
and certain subsidiary borrowers and guarantors, n/a
Bank of America as agent and other lenders.
(Incorporated by reference to the company's
Form 8-K dated September 16, 1994)
99 Press release of the registrant 4 - 6
issued March 1, 1995
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SUNRISE MEDICAL INC.
Date: March 10, 1995 By /s/ TED N. TARBET
--------------------------------------
Ted N. Tarbet
Senior Vice President, Chief Financial
Officer and Secretary
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EXHIBIT 99
[LETTERHEAD OF SUNRISE MEDICAL]
FOR IMMEDIATE RELEASE March 1, 1995
CONTACTS: Ted N. Tarbet (Financial) or Melody Carey
Marcia Vaughan (Media) Noonan/Russo Communications
Sunrise Medical Inc. (212) 696-4455 ext. 204
(619) 930-1500
SUNRISE MEDICAL ACQUIRES LEADING FRENCH MANUFACTURER
OF HEALTHCARE BEDS
CARLSBAD, Calif.--Sunrise Medical Inc. (NYSE: SMD) today announced it has
signed a definitive agreement to acquire the Corona Group of Tours, France, a
leading French manufacturer of healthcare beds, for a total of 206 million
French francs (approximately $40 million), consisting of FF175 million ($34
million) in cash and FF31 million ($6 million) in Sunrise stock. The acquisition
is expected to close on April 7, 1995, pending French government approval. The
transaction is being financed through Sunrise Medical's $225 million multi-
currency credit facility.
Corona is a privately-held company with current annual revenues of about
$37 million. A majority of the group's shares are owned by the Suzanne family,
including founder and former president Mr. Christian Suzanne and current
president Mrs. Jeanne Santucci-Suzanne. A minority ownership position is held by
Credit Lyonnais Investissement. Corona operates two modern manufacturing
facilities in Tours, one devoted to beds and the other to nursing home
furnishings.
Corona believes it is the French market leader in home care beds, the
co-leader in nursing home beds and furniture, and that it holds a number two
position in hospital beds. The company markets its products to French nursing
homes and hospitals through its own direct sales force and sells to home care
dealers through its wholly-owned subsidiary called Tecktona Sante. Corona sales
outside France are minimal.
Effective with the closing date, Mrs. Suzanne will become a part-time
consultant to the company, and Mr. Suzanne will also be available for
consulting.
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SUNRISE MEDICAL ACQUIRES CORONA GROUP
Their two sons, Pascal (34) and Laurent (31), will remain in their current
executive positions in operations and marketing, respectively. Assuming the
presidency of Corona will be Roger Lewis (46), currently director of
international sales of Sunrise Medical's UK manufacturing division. A proven
five-year veteran with Sunrise, Lewis was previously the European general
manager for the computer peripherals division of Citizen Watch Company. Prior to
that, Lewis, who speaks French fluently, lived in Paris for seven years, working
in the international divisions of Peugeot and also in a family-owned engineering
company.
Commenting on the acquisition, Richard H. Chandler, Sunrise Medical
chairman and chief executive officer, said, "We are excited about this
acquisition for a number of reasons. Corona is a strong, well-managed company
with an excellent record of growth and profitability. Its product lines and
markets are well accepted in the marketplace and parallel those of our Joerns
Healthcare division in the United States, offering many opportunities for the
sharing of technology.
"Healthcare beds have traditionally been a difficult product to export to
developed countries, since each tends to have its own requirements and
specifications," Chandler continues. "Strategically, therefore, we felt it was
essential to have our own bed manufacturing company in Europe, particularly in
view of the burgeoning home healthcare market in Germany, France and elsewhere.
We believe there are significant opportunities to be realized from marketing
Corona's beds through the growing Sunrise Medical distribution organization,
which now covers most of the European Community. Corona can also assist other
Sunrise Medical divisions in marketing products to the French nursing home and
hospital communities. Sunrise already has sales forces in France covering the
rehabilitation and respiratory markets under its Sunrise Medical S.a.r.l.
distribution organization, headquartered near Paris, which will continue to
operate independently of Corona."
Corona Group President Jeanne Santucci-Suzanne commented, "We determined
that, by joining forces with an extremely experienced and respected
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SUNRISE MEDICAL ACQUIRES CORONA GROUP
partner in the international healthcare arena, we would be able to better
capitalize on opportunities emerging through new technologies and expanding
global markets. Although we had been approached by other companies in the home
medical equipment industry, we chose to become a part of Sunrise Medical because
of the excellent strategic and cultural fit between our two companies. We are
very excited about our new partnership and believe that many marketing and
distribution opportunities exist between Corona and other divisions of Sunrise
that will advance our long-term business objectives."
The Corona Group was founded in 1954 and today employs 161 Associates,
located primarily in Tours, who are dedicated to the manufacture, marketing and
sale of hydraulic and electric beds and other furniture for the home care,
nursing home and hospital markets.
Sunrise Medical designs, manufactures and markets medical products used in
institutional and home care settings that address the recovery, rehabilitation
and respiratory needs of the patient. Sunrise is the world's largest
manufacturer of medical devices used in the home and a proud official sponsor of
the 1996 Atlanta Paralympic Games.
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