PRESS RELEASE
FOR IMMEDIATE RELEASE:
ALR Industries is excited to announce that ALRI has merged with Hi-Tech Pharmaceuticals, Inc. Creating the World’s Premier
Nutraceutical Company
Ventura, CA - January 1, 2013 - ALR Industries announced today that it will be merging with the rapidly growing Atlanta-based Hi-Tech Pharmaceuticals, Inc. ALR Industries expects this merger to widen its customer base, strengthen its manufacturing platform, and allow ALR Industries to focus more attention to innovation and Research & Development.
ALR Industries is a leading developer, provider and distributor of nutritional products designed for health, training, physique development and performance. ALR Industries was founded in 2002 and since then has become a leading US performance nutrition business. Its products are shipped to thousands of retail outlets in the USA and distributed in dozens of countries worldwide. ALR Industries cutting-edge products and innovation has created excellent brand awareness and product loyalty over the past 10 years. ALR Industries is a pioneer in pre- workout powders, post workout powders, and a market leader in these categories. Another core product area is protein supplementation, where ALR Industries is revolutionizing the protein market with the advent of HumaPro®. In addition, ALR Industries provides a choice of related performance nutrition products. The Board of Hi-Tech believes that the acquisition of ALR Industries significantly enhances the group's performance nutrition portfolio and delivers further growth opportunities in this area.
In particular, the acquisition:
• Builds on Hi-Tech’s position in the attractive, high growth, sports nutrition sector;
• Broadens the performance nutrition product portfolio into new categories and channels;
• Represents international growth opportunities for performance nutrition;
• Offers innovation and new product development opportunities through combined R&D; and
• Continues to develop ALR Industries in line with Hi-Tech's strategic growth strategy.
“Hi-Tech Pharmaceuticals is an excellent strategic fit, and this merger underlines our commitment to be the world’s leading sports nutrition, physique development and performance company,” ALR Industries CEO, Author L. Rea, said in a statement on Thursday. Hi-Tech’s recent acquisition of Nittany Pharmaceuticals in Pennsylvania (200,000 sq. ft. total) in September 2012 and Hi-Tech’s desire to merge with ALR Industries is part of Hi-Tech's strategy to capitalize on its increased manufacturing capacity.
Recently, Hi-Tech completed its 40,000 sq. ft. state-of- the-art facility in Suwanee, Georgia to bring the total square footage in Georgia to 135,000, bringing Hi-Tech to a total of 335,000 square feet, which brings Hi-Tech to the very top of the supplement industry! ALR Industries ability to capitalize on this synergy only made sense, as Hi-Tech already was our primary contract manufacturer.
MARKETING HYPE DOESN'T BUILD BODIES...
SCIENTIFIC FACTS & SWEAT DOES."Today we go forward as a single company, providing more sports nutrition products to help more athletes than virtually any other nutritional company has ever done before," said Hi-Tech President and Chief Executive Officer Jared Wheat. "ALR Industries will continue to be the dynamic company it has always been known to be, and Hi-Tech will help grow ALR Industries by providing extraordinary infrastructure for discovering, developing and delivering innovative sports medicines and health care
solutions; essential to improving global public health and addressing unmet training, physique development and performance supplements needs."
Strategic Overview
Steve Smith, Senior Vice President of Hi-Tech said: “The combination of Hi-Tech and ALR Industries provides a powerful opportunity to transform our industry. It will produce the world’s premier nutraceutical company whose distinct blend of diversification, flexibility and scale, positions it for success in the dynamic global dietary supplement environment. The new company will be an industry leader in human, animal and consumer health. With our combined nutritional products designed for health, training, physique development and performance, it will lead in the ever changing world of nutritional supplementation.
Laina Jensen, Vice President of ALR Industries, said, “ALRI’s commitment to scientific innovation has enabled us to build a diversified sports nutrition company with leadership in attractive growth areas such as proteins, amino acids and nutritionals. For example, ALR Industries developed HumaPro®, the first protein supplement with a 99% NNU protein score for humans. In addition, because we were early to see the potential of protein technology to create life-changing nutritional supplements, we now have a strong franchise which includes the new HumaPro® RTD- the number one RTD product in the world. With our business focused on training, physique development and performance, ALR Industries is well positioned in today’s rapidly changing sports nutrition category. Our employees should be enormously proud of what we have built and confident that combining with Hi-Tech will accelerate our pursuit of innovative new sports supplements to meet the athlete’s needs. ALR Industries and Hi-Tech are highly complementary businesses, and together we can build the best diversified dietary supplement company in the world. We believe we can better execute our strategy and can accomplish far more together in the years ahead than either company could have achieved on its own.”
Mrs. Jensen continued, “With this combination, ALRI will offer athletes around the world a uniquely broad and diversified portfolio of sports nutrition innovations through business units--each one focused on different customer needs and backed by the resources of a premier global organization. By combining the spirit of small, agile enterprises with our combined scale, Hi-Tech will advance its mission of working together toward a
healthier world.”
