AMITYVILLE, N.Y. Hi-Tech Pharmacal announced today the signing of a definitive agreement under which it acquired the assets of Midlothian Laboratories for $5 million in an all-cash transaction. Additionally, Hi-Tech will pay approximately $900,000 for inventory and potentially up to $1 million in performance incentives tied to future Midlothian product sales, and the approval of a drug application.
Under the terms of the acquisition Hi-Tech receives rights to Midlothian’s current product line, consisting of prescription nutritional supplements including pre-natal vitamins and several cough and cold formulations, and future applications and non-drug products that are in development.
“This acquisition expands Hi-Tech’s product line, broadens our dosage form offerings, brings us into new therapeutic categories, adds to the company’s growing pipeline of products and brings experienced management,” said David Seltzer, president and chief executive officer of Hi-Tech Pharmacal. “We believe that the acquisition will be accretive to earnings and cash flow positive in the first year.”