Langer, Inc. Announces Entry Into Agreement to Acquire Regal Medical Supply
18 Décembre 2006 - 2:55PM
PR Newswire (US)
DEER PARK, N.Y., Dec. 18 /PRNewswire-FirstCall/ -- Langer, Inc.
(Nasdaq: GAIT, "Langer" or the "Company") today announced that on
Friday December 15th it signed a definitive agreement to purchase
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 is 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 will be funded through the issuance of
shares of Langer common stock. 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 is expected to execute a three year employment contract and
join an affiliate of the Company as its Vice President of Field
Sales. The acquisition is expected to close in the first quarter of
2007. Gray Hudkins, the Company's President and CEO commented, "As
we have stated on our quarterly earnings conference calls, three
important pieces around our strategy for our legacy orthotics
business have been defined as an increased focus on markets outside
of our historical markets, a focus on larger multi-location
institutional clients, as well as the ability to receive higher
average selling prices for our products by providing an additional
fulfillment and, in some cases, billing services. We believe the
Regal acquisition allows us to take a meaningful step toward the
achievement of each of these prongs of our strategy. First, Regal
offers both off-the-shelf and custom orthotic products into various
long term care settings, which has been a priority for us in terms
of market diversification for our custom product offerings. Second,
we believe there is an interesting opportunity to leverage Regal's
structure to create system or chain wide product and service
programs for large regional and national multi-location long term
care operators, which may provide improved selling leverage and
scalable revenue impact than is possible in some of our historical
markets. Lastly, because Regal provides an additional fitting and,
in some case, billing services, they typically receive higher
average selling prices equivalent to the reimbursed insurance rate
for certain products rather than the wholesale price." Mr. Hudkins
continued, "We also believe this transaction allows Langer to
increase its sales coverage in our core markets, to leverage its
manufacturing overhead by providing Regal with products it
previously sourced from other companies, and to accelerate the
execution of our strategy around our legacy orthotics business.
John Shero is an entrepreneurial professional with a long track
record in the long term care markets and we are excited to welcome
him to our team." 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, +1-212-687-3260 Web site: http://www.langerinc.com/
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