K-V Pharmaceutical Closes Sale Of Particle Dynamics Business

K-V Pharmaceutical Company (the "Company") announced recently it has closed the sale of the assets of Particle Dynamics, Inc. ("PDI"), one of its wholly-owned subsidiaries, to an investor group led by Edgewater Capital Partners. PDI is principally engaged in the development and marketing of specialty raw materials used as ingredients in the pharmaceutical industry and other markets.

The aggregate purchase price for the transaction is $24.6M, plus up to an additional $5.5M in potential earn-out payments over the next four years. The Company received a cash payment of $22.6M at closing. In addition, $2M of the purchase price is being held in an escrow arrangement for post-closing indemnification purposes.

"This divestiture is consistent with our efforts to strengthen our financial position and improve liquidity through the sale of non-core assets," said David A. Van Vliet, the Company's Interim President and Interim CEO. "We are pleased to have completed this transaction and remain focused on returning our approved products to market."

About KV Pharmaceutical Company
K-V Pharmaceutical Company is a fully-integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded prescription pharmaceutical products. The company markets its technology-distinguished products through Ther-Rx Corporation, its branded drug subsidiary.

For more information, visit www.kvpharmaceutical.com.

SOURCE: K-V Pharmaceutical Company