Langer, Inc. Closes Acquisition of Twincraft Inc.


NEW YORK, Jan. 23 /- 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.

FCMN Contact: ghudkins@langerinc.com

Source: Langer, Inc.

CONTACT:
W. Gray Hudkins,
President and CEO, Langer, Inc.,
+1-212-687-3260

Web site: http://www.langerinc.com/

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