Leiner agrees to sell substantially all assets for $260 million

By Caroline Salls

Pittsburgh, June 3 - Leiner Health Products Inc. has agreed to sell substantially all of its assets to a wholly owned subsidiary of NBTY, Inc. for $260 million, including the assumption of liabilities, according to an 8-K filed with the Securities and Exchange Commission.

The sale is subject to receipt of higher bids and approval by the U.S. Bankruptcy Court for the District of Delaware.

An auction will be held on June 9 if any competing bids are received.

If the NBTY subsidiary is not the high bidder, Leiner will pay it a $5.75 million break-up fee, plus a limited expense reimbursement.

The sale is expected to close no later than September.

Leiner is a Carson, Calif.-based manufacturer of store-brand vitamins, minerals and nutritional supplements. The company filed for bankruptcy on March 10. Its Chapter 11 case number is 08-10446.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.