Form 8-K: Hanger In Pact To Sell Some Dosteon Operations In California; Pretax Cost $15.6M to $30.4M

BZ NOTE:
From Form 8K:

On November 5, 2014, the Audit Committee of the Board of Directors (the “Board”) of Hanger, Inc. (the “Company”) approved a plan to sell and/or otherwise dispose of the Company’s Dosteon and CARES businesses.  This action was taken as a result of the Company’s strategic evaluation of these businesses.  The Dosteon and CARES businesses will be reflected as discontinued operations in the Company’s consolidated financial statements beginning in the fourth quarter of 2014.  The Company has entered into a definitive agreement to sell the portion of its Dosteon business located in California, and expects that sale to close in the fourth quarter of 2014, subject to customary closing conditions. The Company is engaged in negotiations with a potential purchaser regarding substantial portions of the remaining Dosteon business and is seeking indications of interest for the CARES business.  However, there can be no assurance that any of these activities will culminate in the sale of all or a portion of these businesses.

In connection with these actions, the Company currently estimates that it will incur total pre-tax exit and disposal costs in the range of approximately $15.6 million to $30.4 million. The future cash impact is expected to range from approximately $0.3 million of cash inflows to approximately $12.3 million of cash expenditures.  The estimated pre-tax exit and disposal costs include employee separation and retention costs of approximately $2.1 million to $2.4 million; contract termination and other exit costs of approximately $4.4 million to $12.8 million; and non-cash charges associated with the write-down of intangibles, fixed assets and inventory of approximately $9.2 million to $15.2 million.  The foregoing are estimates only and reflect a range of possibilities regarding the exit and/or disposal of the Dosteon and CARES businesses, including their potential sale or shutdown.  Actual costs relating to these actions will not be known until the Company has fully implemented the exit and disposal plan.