ACETO Unit To Buy PACK Pharma For Up To $100 Mln - Quick Facts

(RTTNews) - ACETO Corp. (ACET), engaged in marketing, sale and distribution of products for Human Health, Pharmaceutical Ingredients and Performance Chemicals, Thursday said its wholly-owned subsidiary Rising Pharmaceuticals, has signed a definitive purchase agreement to acquire 100 percent of the equity interests of PACK Pharmaceuticals, LLC for a total transaction value of around $100 million.

PACK is a national marketer and distributor of generic prescription and over-the-counter pharmaceutical products. The combination is expected to advance ACETO's strategy to expand further into the finished dosage pharmaceutical business.

Apart from its current product portfolio, PACK has a pipeline that includes 22 abbreviated new drug applications which have been filed with the U.S. Food and Drug Administration and approximately 30 additional generic product candidates which are in varying stages of development.

The purchase price includes an initial payment of about $80 million in cash and $5 million in ACETO stock. The agreement also provides for a three-year earn-out of up to $15 million in cash based on the achievement of some performance-based targets.

The transaction is expected to close in the second half of April. In connection with the transaction, the three principals of PACK will join Rising with Bryan Aschenbrand and Chris Dungan assuming senior management roles and Dushyant Chipalkatty serving as a senior advisor.