Generex Biotechnology Corp. seeks to acquire Medisource Partners, a distributor of medical and surgical products registered with the U.S. Food and Drug Administration, in an all-stock transaction valued at $1 million.
The company and Medisource entered a letter of intent, under which Generex will acquire all assets of Medisource including business operations, accounts receivable and inventory, contracts and real estate, on a debt free basis, for $1 million of its stock.
In addition, Medisource will be eligible to receive additional cash and stock consideration upon achieving certain sales and profit goals.
Medisource has contracts with more than 25 vendors and distributes implants and devices for spine, hips, knees, foot, ankle, hand and wrist surgeries. Its product lines also include biologics, durable medical equipment, and kits to process bone marrow and blood at the time of surgery.
Generex expects to close the transaction in the coming weeks, CEO Joe Moscato said in a Jan. 10 news release."The strategic acquisition of Medisource Partners provides Generex with a value-added service model that fits the corporate mission of NuGenerex Distribution Solutions, adding immediate revenues and profits, while providing significant upside as we integrate the medical and surgical supply business into our current and future MSO networks."
This acquisition announcement comes a day after Generex said it will acquire Pantheon Medical - Foot & Ankle, a manufacturer of specialty orthopedic surgery products and tools.