Interleukin acquires Alan James Group, secures $30 million in new financing

By Elaine Rigoli

Tampa, Fla., Aug. 17 - Interleukin Genetics, Inc. said it has acquired the assets and business of Alan James Group, LLC in a cash and stock transaction.

Interleukin said the combination will create a diversified, fully integrated provider of products and services in the consumer and professional health care marketplace.

Under the purchase agreement, Interleukin made an upfront payment to Alan James of $7 million in cash and $0.5 million in newly issued stock, based on the volume-weighted average closing stock price for the 20 consecutive trading days ending Aug. 15 of $5.68 per share.

In addition, if certain earnings milestones are achieved by the Alan James subsidiary from 2007 through 2009, up to $1.5 million in cash and up to about 1.6 million shares of stock representing a value of $9.25 million based on the same volume-weighted average price of $5.68 per share will be paid as additional consideration.

In connection with the transaction, Alticor, Inc., which owns a majority interest in Interleukin, will provide $30 million in financing in the form of a $15.6 million private placement with Alticor, and a new $14.4 million credit facility.

The amount available under the credit facility will be reduced by the amount of any proceeds received by Interleukin from a planned rights offering of $14.4 million of common stock to existing Interleukin common stockholders at a price of $5.68 per share, to be commenced as soon as practicable, according to a news release.

With the close of the transaction, Tim Richerson, previously president of Alan James Group, has been named chief executive officer of Interleukin.

Alan James will continue to do business under the name Alan James Group as a wholly owned subsidiary of Interleukin.

Interleukin, based in Waltham, Mass., is a biotechnology company.

Alan James Group, based in Boca Raton, Fla., is a privately held consumer products company.

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