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.

Existing investors including Vestar Capital Partners and Park
Avenue Equity Partners maintain controlling investment interests in
both organizations, and will serve on the boards of directors of
both companies. Management will also have an ownership stake in the
companies.

Sunrise manufactures manual wheelchairs, power wheelchairs,
scooters and standard and customized seating and positioning
systems in its own facilities in the United States, Mexico,
Germany, United Kingdom, Spain and China. Its key products are
marketed under the Quickie, Sopur, Zippie, Breezy, Sterling and Jay
brands.

DeVilbiss’ primary product lines include oxygen equipment,
pulmonary drug delivery and sleep apnea therapy. DeVilbiss products
are manufactured in the U.S., Europe and Asia.