Langer, Inc. Closes Acquisition of Regal Medical Supply
09 Enero 2007 - 5:01PM
PR Newswire (US)
DEER PARK, N.Y., Jan. 9 /PRNewswire-FirstCall/ -- Langer, Inc.
(Nasdaq: GAIT, "Langer" or the "Company") today announced the
closing of the acquisition of substantially all of the assets of
Regal Medical Supply, LLC ("Regal") through Langer's wholly-owned
subsidiary Regal Acquisition Co. Regal is a Board for
Orthotist/Prosthetist Certification accredited supplier of
contracture management products and services focused on the long
term care market with 24 sales representatives covering both chain
and independently operated skilled nursing and assisted living
facilities in 22 states. The purchase price was approximately $1.64
million, including the satisfaction of certain obligations to
affiliated parties in exchange for the delivery of excess working
capital. The transaction consideration was funded through the
issuance of 379,167 shares of Langer common stock at a price of
$4.3290. For the calendar year ended December 31, 2005 Regal
generated net sales of approximately $1.87 million and for the nine
month period ended September 30, 2006 generated net sales of
approximately $1.74 million. Regal President John Shero executed a
three year employment contract and joined a subsidiary of the
Company as its Vice President of Field Sales. Gray Hudkins, the
Company's President and CEO commented, "As we have begun working
through the integration of Regal's structure with our existing
sales coverage we are more excited than before about the growth
opportunities we believe this acquisition brings to our Company. In
addition to achieving our goal of penetrating the long-term-care
market with our existing product lines, we also believe we will be
able to provide better clinical and sales support at the local
level to our existing customers. In addition, we have begun calling
on a number of large physical rehabilitation companies that work
with owners of long-term care facilities and have two chain pilot
programs scheduled to begin in early February. We expect to see a
near term increase in utilization of custom Langer products sold by
Regal sales people through the long-term-care channel, leveraging
our manufacturing overhead structure. In addition, we believe that
provision of both products and higher margin fitting and billing
services should have a positive impact on our operating
performance." Mr. Hudkins continued, "We are excited to welcome
Regal President John Shero to our team and we look forward to
working together with our distribution partners, our large
corporate clients, our individual practitioners clients, and our
core podiatric customer base to provide quality products at
competitive prices with unparalleled service." Langer, Inc.,
together with its wholly owned subsidiary Silipos, Inc., designs,
manufactures and distributes high quality medical products
targeting the orthopedic, orthotic and prosthetic markets. In
addition, the Company offers a diverse line of skincare products
for the medical and therapeutic markets. The Company sells its
products primarily in the U.S. and Canada as well as in more than
30 other countries to national, regional, international and
independent medical distributors and directly to healthcare
professionals. Langer is based in Deer Park, New York, and has
additional manufacturing facilities in Niagara Falls, New York,
Anaheim, California, Montreal, Canada, Stoke-on-Trent, UK as well
as sales and marketing offices in Ontario, Canada and New York, New
York. Certain matters discussed in this press release constitute
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those
projected. The Company may use words such as "anticipates,"
"believes," "plans," "expects," "intends," "future" and similar
expressions to identify forward-looking statements. These risks and
uncertainties are described in the Company's filings with the
Securities and Exchange Commission, including the Company's 2005
Form 10-K, 2006 Proxy Statement for the Annual Meeting of
Stockholders, and recently filed Form 10- Qs and Form 8-Ks.
DATASOURCE: Langer, Inc. CONTACT: W. Gray Hudkins, President and
CEO of Langer, Inc., +1-212-687-3260 Web site:
http://www.langerinc.com/
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