NBTY announces agreement to acquire Leiner
RONKONKOMA, N.Y. NBTY announced Tuesday that it had pulled the trigger on its proposed acquisition of Leiner Health Products by fielding the best and highest bid at an auction held June 9 for the purchase of substantially all of the assets of Leiner.
The acquisition makes NBTY the largest supplement supplier in North America, according to analysts.
The purchase price was $371 million plus assumption of certain liabilities, up from $230 million proposed May 30.
“The Leiner acquisition reflects our ongoing efforts to better meet the needs of our customers by providing them with the highest quality service and continuous product supply,” stated NBTY chairman and chief executive officer Scott Rudolph.
The purchase agreement provides for a downward purchase price adjustment if the amount of actual working capital at the closing is less than $110 million, and for an upward purchase price adjustment if the amount of actual working capital at closing is greater than $110 million.
The agreement is subject to the approval of the bankruptcy court presiding over Leiner’s chapter 11 bankruptcy proceedings.
NBTY expects to consummate the acquisition by no later than September.
Leiner Health, which entered bankruptcy proceedings in March, ran afoul of the Food and Drug Administration last year, when its Fort Mill, S.C. plant, which manufacturered over-the-counter medicines, was found to be out of compliance with Good Manufacturing Practices. Following a recall of Leiner OTC products, Leiner closed the Fort Mill facility and temporarily suspended distribution of OTC products.
For the six months ended Sept. 29, 2007, the last time a quarterly earnings report was filed, Leiner recorded net sales of $233 million and a net profit loss of $53.8 million.
Study suggests green tea effective on HPV-related warts
NEW YORK A study published in the June issue of the Journal of Obstetrics and Gynecology has found that the green tea extract sinecatechins is useful for treating genital and anal warts.
The study found that 57 percent of patients who received ointment containing 10 or 15 percent sinecatechins were cleared of warts, compared to 34 percent of patients in the control group. Warts in at least three quarters of patients were cleared by at least 50 percent, compared to about half of patients in the control group.
The study examined 502 adults with between two and 30 warts over a 16-week period or until warts cleared.
Genital warts are caused by the human papillomavirus, also known as HPV and increase the risk of cervical cancer in women.
NBTY proposes $230 million buyout of Leiner
RONKONKOMA, N.Y. NBTY on May 30 proposed buying troubled private-label manufacturer Leiner Health Products in a deal worth $230 million plus the assumption of certain liabilities, according to an NBTY SEC filing.
The proposed buyout of Leiner, which filed for bankruptcy protection March 10, will be subject to higher or better offers and if any are proffered, the ownership of Leiner Health will be decided at a June 9 auction
If no higher or better offer is submitted by a competing bidder, the purchase transaction is expected to close no later than September.
Leiner in March filed its second bankruptcy in seven years, and is also emerging from a manufacturing scandal, in which the company last month pled guilty to mail fraud and forfeited $10 million to close the chapter on a U.S. Department of Justice investigation into Leiner’s now-closed Fort Mill, S.C. production facility following a Food and Drug Administration warning letter that “found many serious deviations [at that facility], some of which involved data manipulation and inadequate testing procedures.” The FDA concluded that “the products manufactured at [the Leiner] facility under these violative conditions put consumers at significant risk.”
Early last year, Leiner had stopped making over-the-counter drugs at that facility. In addition, Robert Kaminski resigned as company chief executive officer and was succeeded by Robert Reynolds.
The recent agreement in no way implicates or affects Leiner’s ability to manufacture and distribute vitamin and mineral products, the company stated.