FOR YOUR INFORMATION..............................JULY 24, 1991 E-Z-EM, INC. SEEKS FTC APPROVAL FOR DIVESTITURE OF LAFAYETTE PHARMACAL ASSETS TO LAFAYETTE PHARMACEUTICALS, INC. E-Z-EM, Inc., a Westbury, New York, medical products manufacturer, has requested Federal Trade Commission approval to divest its Lafayette, Indiana manufacturing plant and other assets acquired from Lafayette Pharmacal, Inc. ("Lafayette") to Lafayette Pharmaceuticals, Inc. ("LPI"), a Delaware corporation. E-Z-EM's application is subject to public comment for 30 days, until August 23. E-Z-EM acquired the Lafayette assets in 1988. E-Z-EM did not make a premerger filing because it purchased the assets for less than $15 million. The FTC, therefore, did not have prior notice to study the acquisition before it occurred. E-Z-EM manufactures medical products, including barium sulfate products used by radiologists in x-ray diagnostic applications. Prior to its acquisition by E-Z-EM in 1988, Lafay- ette manufactured barium sulfate diagnostic products at its Lafayette, Indiana plant. An October 1990 consent order requires prior FTC approval of the divestiture. The order settled FTC charges that E-Z-EM's acquisition of Lafayette eliminated competition for barium diagnostic products between the two companies, and allowed E-Z-EM to acquire a monopoly in the U.S. barium market. The FTC charged that the resulting monopoly would allow E-Z-EM to behave as a dominant firm and increase the likelihood of collusion if another firm should enter the market. The order requires E-Z-EM to divest the Lafayette plant and other assets within 12 months to an acquirer approved by the FTC. - more - E-Z-EM, Inc.--07/24/91) According to E-Z-EM's application, Galen Partners, L.P. and Barkley Medical Products, Inc. formed LPI, the proposed purchas- er, to acquire the Lafayette business. E-Z-EM asserts that the divestiture would promote competition, because neither Galen nor any of the companies in which it has current investments has any involvement in the barium sulfate diagnostic business. While Barkley does distribute some barium sulfate products, E-Z-EM claims that Barkley's involvement is limited and accordingly, does not cause competition concerns. The Commission will examine the competitive implications of this transaction to determine whether it will approve E-Z-EM's application. The proposed purchase price is $5.5 million. Under the proposed divestiture agreement, E-Z-EM would not divert customer orders for Lafayette products to E-Z-EM products for six months, in order to permit LPI to establish its sales force. Copies of the application are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326- 2502. # # # MEDIA CONTACT: Bonnie Jansen, Office of Public Affairs 202-326-2161 STAFF CONTACT: Roberta Baruch, Bureau of Competition 202-326-2861 (Docket No. C-3311) (E-Z-EM)