Aceto In Deal To Sell Chemicals Unit For $338 Mln; Files Voluntary Chapter 11

(RTTNews) - Aceto Corp. (ACET), a developer of Human Health products, Pharmaceutical Ingredients and Performance Chemicals, announced Tuesday that it has entered into a "stalking-horse" asset purchase agreement with New York-based investment firm New Mountain Capital.

The deal is to sell its chemicals business assets for gross proceeds of $338 million in cash, plus the assumption of certain liabilities and subject to certain adjustments, on a cash-free and debt-free basis.

The sale will be conducted under Section 363 of the U.S. Bankruptcy Code. To facilitate the sale and satisfy its debt obligations, Aceto and its U.S. units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey (Newark).

Aceto's foreign chemicals business subsidiaries are not included in the filing but will be included in the sale.

In addition, Aceto intends to enter into a stalking horse agreement for its subsidiary, Rising Pharmaceuticals.

The company expects to complete the dispositions of its chemicals and Rising businesses before its fiscal year end on June 30, 2019.

Aceto said it will operate its business in the ordinary course while it completes the sales of its chemicals business assets and its subsidiary Rising Pharmaceuticals.

The proposed sales will be conducted through Court-supervised processes under Section 363 of the Bankruptcy Code, subject to Court-approved bidding procedures, potential receipt of higher and better offers at auction and approval by the Court.

Separately, Aceto said it intends to file its Form 10-Q for the second fiscal quarter ended December 31, 2018 tomorrow.