Langer, Inc. Closes Acquisition of Twincraft Inc.
23 Enero 2007 - 4:58PM
PR Newswire (US)
NEW YORK, Jan. 23 /PRNewswire-FirstCall/ -- Langer, Inc. (Nasdaq:
GAIT, "Langer" or the "Company") today announced the closing of the
acquisition of the outstanding stock of Twincraft Inc.
("Twincraft"), a leading private label manufacturer of specialty
bar soap focused on the health and beauty, amenities, mass and
direct marketing channels. The purchase price was approximately
$26.9 million, with $22.9 million paid in cash and the balance
through the issuance of 999,375 shares of Langer common stock.
Twincraft generated revenues of approximately $27.1 million for the
fiscal year ended December 31, 2005, and for the nine month period
ended September 30, 2006 generated revenues of approximately $20.7
million compared to revenues of $19.3 million in the comparable
prior year period, an increase of approximately 7.3%. Peter Asch,
Twincraft's President and CEO, has executed a three year employment
agreement with the Company and has joined the Company's Board of
Directors effective as of closing. It is expected that Twincraft
management and operations will remain in its Vermont locations.
Gray Hudkins, Langer's President and CEO commented, "We are pleased
to close the acquisition of Twincraft and are excited about the
growth opportunities the combination of our companies presents. As
we begin collaboration with Twincraft on research & development
and sales opportunities, we believe it is even more apparent that
the increased scale of our business, our expanded market presence
and the addition of new sales channels should have a positive
impact on our future growth." Mr. Hudkins continued, "We look
forward to working with Pete Asch and his management team and
welcome Pete to the Company's Board of Directors." The transaction
purchase price is subject to certain post closing purchase price
adjustments based on an audit of fiscal 2006 operating performance
and working capital levels delivered at closing. The selling
shareholders of Twincraft may also be entitled to earnout payments
over the next two years based on operating performance in fiscal
2007 and fiscal 2008. Morgan Joseph & Co, Inc. served as
financial advisor to Langer in the transaction and Kaufman &
Company LLC served as financial advisor to Twincraft. Langer, Inc.,
together with its wholly owned subsidiaries Silipos Inc. and Regal
Medical Supply, is a leading provider of high quality medical
products and services targeting the long-term care, orthopedic,
orthotic and prosthetic markets. Through its wholly owned
subsidiaries Twincraft Inc. and Silipos Inc., the Company offers a
diverse line of bar soap and other skincare products for the
private label retail, 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, NY, Anaheim,
CA, Winooski, VT, Montreal, Canada, Stoke-on- Trent, UK as well as
sales and marketing offices in Toronto, Canada, Dallas, TX and New
York, NY. Certain matters discussed in this press release
constitute forward-looking statements that involve risks and
uncertainties that could cause 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, related to both ongoing operations as well as
acquisitions, are described in the Company's filings with the
Securities and Exchange Commission, including the Company's
Registration Statement on Form S- 1, its 2005 Form 10-K and most
recently filed Form 10-Qs and Form 8-Ks. No assurance can be given
that future results covered by the forward-looking statements will
be achieved. Such forward-looking statements include, but are not
limited to, those relating to Langer's financial and operating
prospects, future opportunities, Langer's ability to identify
suitable companies as acquisition or merger targets, Langer's
ability to close and successfully integrate acquired companies and
assets, Langer's ability to obtain financing to fund its
acquisition program, the outlook of customers, and the reception of
new products, technologies and pricing. DATASOURCE: Langer, Inc.
CONTACT: W. Gray Hudkins, President and CEO, Langer, Inc.,
+1-212-687-3260 Web site: http://www.langerinc.com/
Copyright