Friday, August 18, 2006

Interleukin acquires Florida health-care company for $7.5M

By Mass High Tech

Waltham-based Interleukin Genetics Inc. reports today it has acquired Alan James Group LLC, a privately held health-care products management company based in Boca Raton, Fla., in a $7.5 million cash-and-stock deal.

As part the deal, Interleukin reports it has agreed to pay another $1.5 million in cash, and up to approximately 1.6 million shares of stock, valued at approximately $9.25 million, if the Alan James subsidiary achieves certain milestones during the 2007 to 2009 period. Also in connection with the acquisition, Alticor Inc., which owns a majority interest in Interleukin, has agreed to provide $30 million in financing in the form of a $15.6 million private placement and a new $14.4 million credit facility.

Executives from both companies say the combination will create a diversified, fully integrated provider of products and services in the consumer and professional health-care marketplace. Interleukin and Alan James have complementary capabilities in genetic testing services and preventive health care products distribution. By combining these capabilities, executives say the company will be well positioned to expand its science-based solutions portfolio, rapidly commercialize its products and services and offer a broad selection of innovative, preventive, and personalized therapeutics to its customers.

With the close today's transaction, Tim Richerson, previously president of Alan James Group, LLC., has been named chief executive officer of Interleukin Genetics Inc. Dr. Kenneth Kornman, previously president and chief executive officer of Interleukin, maintains the roles of president and chief scientific officer, and has been appointed as a director on the Interleukin board. Dr. Philip Reilly has stepped down as director and chairman of the Interleukin board and will continue to serve as a strategic advisor to the company. Interleukin director Thomas Curran has been named chairman of the Interleukin board.