This latest acquisition will reduce Atrium dependency on third party
manufacturing and will increase its profitability on its German enzyme-
QUEBEC CITY, Dec. 17 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB) is pleased to announce the acquisition of EAB Enzym-Arzneimittel-Berlin GmbH ("EAB"), the current exclusive manufacturer of Mucos Pharma's enzyme products which include Wobenzym(R) N, its leading product. EAB and Mucos Pharma, a subsidiary of Atrium, are both located in Germany.
EAB is a pharma-grade high quality enzyme manufacturer that is dedicated to Mucos Pharma's particular needs. It has a specific technology used to manufacture Wobenzym(R) N and has Good Manufacturing Practices (GMP) certification. Considering the potential to expand the sales of Wobenzym(R) N in the existing and new countries, the EAB manufacturing unit is essential to the development of the Wobenzym(R) N business in the future.
Since the acquisition of Mucos Pharma in July 2007, Mucos Pharma and EAB have been involved in a mutual exclusive business relationship. The acquisition will benefit Atrium by eliminating an intermediary allowing Atrium to increase overall profitability. At the same time, Mucos Pharma will be gaining additional manufacturing capacity and flexibility to fulfill future needs.
Atrium will acquire EAB for a total cash consideration of approximately 13.6 million euros (US$18.7 million) which will be effective on January 2, 2009. Moreover, EAB has a long-term debt of 6.5 million euros (US$8.9 million).
"This acquisition reduces significantly our dependency on an exclusive third party manufacturing, enabling us to more effectively control the complete process of bringing Wobenzym(R) N and our other enzyme-based products to market. The EAB acquisition will also benefit Atrium through increased opportunities for synergies and knowledge transfers between its various production centres, as well as expanding our manufacturing capacity in Europe - a market that we will continue to develop", said Mr. Pierre Fitzgibbon, President and Chief Executive Officer.
EAB is a privately owned manufacturing company located in Berlin, Germany. The company has been the manufacturer of all Mucos Pharma's enzyme-based products and contractually exclusive since Atrium acquired Mucos Pharma in July 2007.
Atrium Innovations Inc. is a recognized leading developer, manufacturer and marketer of science-based and professionally endorsed products for the health and nutrition industries. The Company focuses primarily on growing segments of the health and nutrition markets which are benefiting from the trends towards healthy living and the ageing of the population. Atrium markets a broad portfolio of finished products through its highly specialized sales and marketing network in more than 35 countries, primarily in North America and Europe. Atrium has over 625 employees and operates five manufacturing facilities. Additional information about Atrium is available on its Web site at www.atrium-innov.com.
Cautionary Note and Forward-Looking Statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable, but cautions the reader that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company. For additional information with respect to these and other factors, see the Company's quarterly and annual filings with the Canadian securities commissions. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.