Adams to repurchase manufacturing assets, operations from Cardinal Health

By Elaine Rigoli

Tampa, Fla., July 27 - Adams Respiratory Therapeutics, Inc. has entered into a definitive agreement with Cardinal Health, Inc. to repurchase the manufacturing assets and operations in Fort Worth, Texas, for about $28 million.

Cardinal Health originally purchased the manufacturing operations from Adams in 2004.

Adams said it expects to take ownership of the facility from Cardinal Health on or about July 31.

Adams said it will incur a one-time pre-tax charge of between $8 million and $10 million in the fiscal 2007 first quarter ending Sept. 30, 2006, depending on the final value of the assets and obligations of the transaction at closing.

Adams plans to finance the plant buyback using a combination of cash on hand as well as debt financing.

The financial terms of the agreement consist of cash payments of about $28 million, of which about $24 million will be paid upon the anticipated closing and the remainder will be paid quarterly during fiscal-year 2007.

Adams is a specialty pharmaceutical company located in Chester, N.J.

Cardinal Health is a health care company with headquarters in Dublin, Ohio.

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