ACETO Corporation Sees Acquisition of PACK Diluting 2014 EPS by $0.08/Share

ACETO Corporation

, a global leader in the marketing, sale and distribution of products for Human Health, Pharmaceutical Ingredients and Performance Chemicals, today announced that its wholly-owned subsidiary, Rising Pharmaceuticals ("RISING"), has closed the acquisition of 100% of the equity interests of PACK Pharmaceuticals, LLC ("PACK"), a national marketer and distributor of generic prescription and over-the-counter pharmaceutical products. The total transaction value is approximately $100 million. At closing, ACETO paid $80 million in cash, adjusted for working capital, and $5 million in ACETO stock. The definitive purchase agreement also provides for potential additional payments totaling no more than $15 million, based on the achievement of certain performance-based targets. The Company is also assuming certain of PACK's obligations incurred in the normal course of business, subject to the terms and conditions of the purchase agreement. PACK recorded net sales of approximately $46 million for calendar year 2013. Based upon the consideration paid at closing, including receipt of working capital, this transaction represents a multiple of calendar 2013 EBITDA of 8.8 on a pro forma basis, adjusted to include expected cost savings. Management expects the transaction, including deal-related expenses, to be approximately $0.08 per share dilutive to fiscal 2014 earnings, slightly accretive to the fiscal 2015 earnings, beginning in the second quarter, and increasingly accretive in years thereafter. "The strategically important and complementary business combination of PACK with our Rising Pharmaceutical business further increases the mix of higher margin finished dosage generic pharmaceuticals in ACETO's revenue base and doubles the size of our development pipeline of new generic products," said Sal Guccione, Chief Executive Officer of ACETO. "In addition, the acquisition establishes ACETO in branded generics for the first time. We welcome the management and employees of PACK Pharmaceuticals to ACETO and look forward to building significant shareholder value together." ACETO management, including Albert Eilender, Chairman of the Board, Salvatore Guccione, Chief Executive Officer and Douglas Roth, Chief Financial Officer, will host a conference call to discuss the transaction at 8:30 a.m. EDT on May 1, 2014. To participate in the conference call, please dial (847) 585-4405 ((888) 771-4371 for toll-free and international callers) approximately 10 minutes prior to the call. Please reference conference ID 37204588. A live webcast of the conference call will be available in the Investor Relations section of the Company's website, www.aceto.com. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. A telephone replay of the conference call will be available from 11:00 a.m. EDT on May 1, 2014 until 11:59 p.m. EDT on May 08, 2014 and may be accessed by calling (888) 843-7419 and reference conference ID 37204588. An archived replay of the conference call will also be available in the investor relations section of the Company's website.