Piramal Healthcare Acquires U.S. Inhalation Anesthetic Gas Distribution Business of RxElite
Mumbai, January 27, 2009: Piramal Healthcare Limited (“Piramal”) [NSE: Pirhealth, BSE: 500302], one of India’s largest pharmaceutical and healthcare companies, and RxElite, Inc. [OTCBB: RXEI.OB] jointly announced today that Piramal has acquired the entire issued outstanding capital stock of RxElite Holdings, Inc. (“Holdings”), the wholly owned subsidiary and the inhalation anesthetic gas distribution arm of RxElite, Inc. for cash consideration of approximately $4.2 million. In addition, Holdings retained approximately $3.2 million of outstanding indebtedness. A significant portion of the net proceeds from the sale will be used by RxElite, Inc. to retire a portion of its long term debt.
The acquisition gives Piramal ownership of Holdings’ sales and distribution network in the U.S. and complements Piramal’s pending acquisition of inhalation anesthetic gas manufacturer Minrad International Inc. (“Minrad”), announced in December 2008, which is awaiting the approval of stockholders of Minrad. Holdings’ customers include hospitals and hospital group purchasing organizations, national and regional wholesalers, outpatient surgery centers and ambulatory care clinics.
Piramal’s acquisition of Holdings includes approximately 2,800 vaporizers required for administration of the inhalation of anesthetic gas, of which 2,300 are installed at various customer locations. Piramal will continue the employment of Holdings’ current sales and marketing specialists, as well as key administrative personnel.
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