08/21/2006

Interleukin Genetics Acquires Alan James Group and Secures $30 Million in New Financing

 

Interleukin Genetics, Inc. recently announced that it has acquired the assets and business of Alan James Group, LLC., a privately held, healthcare-focused consumer products company, in a cash and stock transaction. The combination will create a diversified, fully integrated provider of products and services in the consumer and professional healthcare marketplace. Interleukin and Alan James have complementary capabilities in genetic testing services and preventive healthcare products distribution. By combining these capabilities, 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. 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, Inc., and a new $14.4 million credit facility. With the close of the transaction last week, 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. Current Interleukin director Thomas Curran has been named chairman of the Interleukin board. “This acquisition provides Interleukin with new products and sales and marketing leadership in the rapidly expanding consumer health segment,” said Dr. Kenneth Kornman, president and chief scientific officer of Interleukin Genetics. “Alan James has a strong track record of innovation and marketing in the area of preventive therapeutics. With Alan James' experienced product commercialization team and the strong financial support provided by Alticor, Interleukin is well positioned to effectively commercialize our science-based products and services. By creating a diversified, fully integrated provider of products and genetics tests, we believe this combination will create significant business growth opportunities to the benefit of our shareholders, customers, employees and partners.” “The combination of Interleukin and Alan James will create an innovative company with leading genetics research that is able to deliver science-based products and services in a rapidly expanding marketplace,” said Tim Richerson, chief executive officer of Interleukin Genetics. “The complementary combination of Alan James' existing brands, product pipeline and channel development capabilities with Interleukin's genetics expertise and scientific capabilities positions the company to realize its vision to be a leading genetics-focused, personalized health company. We anticipate integrating our companies to realize the strategic, scientific and financial benefits of this transaction quickly and efficiently.”