Aceto seeks court approval of bid procedures for pharma asset sale

By Sarah Lizee

Olympia, Wash., March 8 – Aceto Corp. is requesting court approval of the bid procedures to sell substantially all of its assets comprising its pharma business, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, the company announced in a Thursday press release that it has entered into a stalking horse asset purchase agreement to sell the assets of Rising Pharmaceuticals and Rising’s subsidiaries to Shore Suven Pharma, Inc.

The purchase agreement includes the assumption of operating liabilities and customer obligations related to the acquired business on a cash-free and debt-free basis.

In addition to the purchase price of about $27 million, excluding the assumed liabilities, Shore Suven has agreed to assume liability for cure costs and other assumed liabilities that may exceed $125 million in total.

If Shore Suven is not the highest bidder, Aceto will pay a break-up fee of $672,500 and an expense reimbursement of no more than $750,000.

Competing bids must exceed the stalking horse bid by at least $2,422,500, which includes the break-up fee, the maximum amount of the expense reimbursement and an overbid of $1 million.

Competing bids are due by March 29. An auction, if required, will be held on April 2. A sale hearing is scheduled for April 4.

Aceto is a Port Washington, N.Y.-based developer, marketer, seller and distributor of human health products, pharmaceutical ingredients and performance chemicals. The company filed bankruptcy on Feb. 19 under Chapter 11 case number 19-13448.

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