WATERBURY, Conn.--Last month OptiCare Health Systems spun off its distribution division, comprised of Wise Optical and its optical buying group. The division went to former chief executive officer Dean Yimoyines, MD, who resigned from that position as the transaction closed.
The division sold for $4.15 million, "less a working-capital adjustment," according to OptiCare
Simultaneously, the company received a new infusion of cash: a $4 million equity investment from Palisade Concentrated Equity Partnership, its majority stockholder, as well as $445,000 from Linda Yimoyines, wife of the former CEO.
President and general counsel, Christopher Walls was named CEO, replacing Dean Yimoyines, who continues as a director and in his role as president and chief executive officer of the company's medical affiliate, OptiCare. P.C.
OptiCare Health Systems retains what Walls called its "core businesses," including its managed-care operation; medical, surgical, and optometric services; and 18 retail optical stores.
The transaction "strengthens the company's financial position and creates a solid foundation for growth," Walls said, adding, "The company has divested itself of non-core underperforming assets and dramatically decreased its debt over the past few years, and can now focus on improving operating efficiencies and growth in its core businesses."
Said Yimoyines, who has been involved in the company for about 20 years and was a co-founder of the retail business, OptiCare Eye Health Centers, "This transaction will allow me to return to my entrepreneurial roots while still providing guidance and counsel to OptiCare."