Langer Inc. has announced the closing of the acquisition of substantially all of the assets of Regal Medical Supply, LLC 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 was 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 was funded through the issuance of 379,167 shares of Langer common stock at a price of $4.3290.
For the year ended Dec. 31, 2005, Regal had net sales of approximately $1.87 million and for the 9-month period ended Sept. 30, 2006 generated net sales of approximately $1.74 million. Regal president John Shero executed a 3-year employment contract and joined a subsidiary of the company as vice president of field sales.
“As we have begun working through the integration of Regal’s structure with our existing sales coverage, we are more excited than before about the growth opportunities we believe this acquisition brings to our company. In addition to achieving our goal of penetrating the long-term-care market with our existing product lines, we also believe we will be able to provide better clinical and sales support at the local level to our existing customers. In addition, we have begun calling on a number of large physical rehabilitation companies that work with owners of long-term care facilities and have two chain pilot programs. We expect to see a near term increase in utilization of custom Langer products sold by Regal sales people through the long-term-care channel, leveraging our manufacturing overhead structure,” said Gray Hudkins, Langer president and chief executive officer.
