AMITYVILLE, N.Y.— Hi-Tech Pharmacal Co. Inc. (NASDAQ: HITK) signed a definitive agreement to acquire the Mag-Ox® line of magnesium dietary supplements from Blaine Co. Inc., Ft. Mitchell, Ky. Under terms of the $4.1 million all-cash transaction, Hi-Tech Pharmacal receives rights to Mag-Ox, Maginex®, Uro-Mag® and Corban™; the brands had net sales of approximately $3.4 million in 2009, and will now be sold through Hi-Tech Pharmacal’s Health Care Products OTC division.
“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.”
Hi-Tech is a specialty pharmaceutical company serving the general health care industry with a focus on liquid and semi-solid dosage forms; the Health Care Products division is a leading marketer of branded prescription and OTC products in the diabetes market.
