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Aceto to Sell its Chemicals Business Assets to New Mountain Capital.

MANews-(C)2009-2019

23 April 2019 - US-based human health products, pharmaceutical ingredients and performance chemicals provider Aceto Corp. (OTC: ACETQ) has agreed to sell its chemicals business assets to an affiliate of US-based investment firm New Mountain Capital, the company said.

The asset purchase agreement was entered into following the conclusion of a court-supervised sale process conducted under Section 363 of the US Bankruptcy Code.

Under that process, an asset purchase agreement between Aceto and NMC was executed, dated February 18, 2019, to sell the chemical business assets as the "stalking horse agreement."

After receiving a qualified offer from another bidder reflecting higher and/or otherwise better terms, a court-supervised sale process was held on April 12, 2019.

Ultimately, NMC was selected as the successful bidder. The transaction is subject to approval of the US Bankruptcy Court at a hearing scheduled for April 16, 2019, and is expected to close in 2Q19, subject to satisfaction of certain conditions.

As previously announced, Aceto and its US subsidiaries filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of New Jersey (Newark) on February 19, 2019 to facilitate the sales of both its chemicals business assets and its subsidiary Rising Pharmaceuticals and to satisfy its debt obligations.

As previously announced, on April 9, 2019, Aceto's finished dosage, generic pharmaceutical subsidiary, Rising Pharmaceuticals, Inc., obtained Bankruptcy Court approval to sell substantially all of its assets, and Aceto expects that transaction to close later this month.

Aceto, incorporated in 1947, is focused on the global marketing, sale and distribution of Human Health products (finished dosage form generics and nutraceutical products), pharmaceutical ingredients (pharmaceutical intermediates and active pharmaceutical ingredients) and performance chemicals (specialty chemicals and agricultural protection products).

With business operations in nine countries, Aceto distributes over 1,100 chemical compounds used principally as finished products or raw materials in the pharmaceutical, nutraceutical, agricultural, coatings and industrial chemical industries.

Aceto's global operations, including a staff of 25 in China and 12 in India, are distinctive in the industry and enable its worldwide sourcing and regulatory capabilities.

New Mountain Capital is a New York based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation.

The firm currently manages private equity, public equity, and credit funds with over USD 20bn in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies.

Lowenstein Sandler LLP is acting as legal advisor to Aceto. PJT Partners LP is acting as Aceto's financial advisor and investment banker to lead the sales processes under the bidding procedures. AP Services, an affiliate of AlixPartners LLP, is also serving as chief financial officer and advisor to Aceto.

Ropes and Gray LLP is acting as legal advisor to New Mountain. CIM Partners LLC is acting as financial advisor to New Mountain.

Country: USA

Sector: Chemicals

Target: Aceto/ chemicals business assets

Buyer: New Mountain Capital

Vendor: Aceto Corp

Deal size in USD:

Type: Divestment

Financing:

Status: Agreed

Buyer advisor: Ropes and Gray , CIM Partners ,

Comment: Terms of the deal were not disclosed
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Publication:M & A Navigator
Date:Apr 23, 2019
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