Aliso Viejo-based KleenAir Systems Inc., a struggling producer of automotive emission reduction technology, said Tuesday it has bought the skin care and pharmaceutical business of Korea-based Innovay Inc., including contracts valued at $10 million.
The deal is expected to close by the end of September.
KleenAir, which expects to transfer its current anti-pollution technology business to its KleenAir Systems of North America Inc. unit, did not disclose the total value of the acquisition.
As part of the agreement, KleenAir also approved a reverse stock split in which five shares are exchanged for one. KleenAir has about 60.54 million shares of outstanding common stock.
After the merger, Innovay shareholders will own 60% of KleenAir’s stock. KleenAir said the current directors and management of KleenAir would continue to manage and operate the company’s anti-pollution technology business.
Lionel Simons, the company’s president, chief executive and chief financial officer, was not available for comment.
KleenAir said the Innovay contracts involve the sale of skin care products to Japan and Korea.
KleenAir shares closed at just under 7 cents on Tuesday.
