Hi-Tech Pharmacal Acquires Mag-Ox Line of Magnesium Supplements from Blaine Company, Inc.
The acquisition of these magnesium brands is a good strategic fit for Health Care Products’ diabetic line since magnesium is a common nutritional deficiency among people with diabetes as well as those with metabolic syndrome, high blood pressure and cardiovascular conditions.
3 Mar 2010 --- Hi-Tech Pharmacal Co., Inc. announced the signing of a definitive agreement under which Hi-Tech acquired the Mag-Ox line of Magnesium Nutritional supplements from Blaine Company, Inc., a privately held company for $4.1 million in an all-cash transaction. Under the terms of the acquisition Hi-Tech receives rights to Mag-Ox, Maginex, Uro-Mag and Corban. The products had net sales of approximately $3.4 million in calendar 2009. The brands will be sold through the Company’s Health Care Products OTC division.
Mag-Ox is a leading magnesium supplement brand that is recommended by doctors and pharmacists for their patients with cardiovascular, diabetes and metabolic syndrome conditions. The brand is poised for growth as the number of patients with these serious conditions continues to increase.
“The acquisition of these magnesium brands is a good strategic fit for Health Care Products’ diabetic line since magnesium is a common nutritional deficiency among people with diabetes as well as those with metabolic syndrome, high blood pressure and cardiovascular conditions”, said David Seltzer, President and CEO of Hi-Tech Pharmacal. “We believe that this acquisition will be earnings accretive and cash flow positive in the near term, and contribute to the Company’s long term growth," he added.
Hi-Tech is a specialty pharmaceutical company developing, manufacturing and marketing generic and branded prescription and OTC products for the general healthcare industry. The Company specializes in difficult to manufacture liquid and semi-solid dosage forms and produces a range of sterile ophthalmic, otic and inhalation products. The Company’s Health Care Products Division is a leading developer and marketer of branded prescription and OTC products for the diabetes marketplace. Hi-Tech’s ECR Pharmaceuticals division markets branded prescription products.
