Rising Pharmaceuticals to acquire PACK Pharmaceuticals

Pursuant to the terms of the agreement, PACK Pharmaceuticals will receive $80m in cash and $5m in ACETO stock. In addition, the agreement provides for a three-year earn-out of up to $15m in cash based on the achievement of certain performance-based targets.

Subject to customary closing conditions and the receipt of required regulatory approval, this acquisition is anticipated to close in the second half of April 2014.

Upon closing of the transaction, the three principals of PACK Pharmaceuticals will join Rising Pharmaceuticals with Bryan Aschenbrand and Chris Dungan assuming senior management roles and Dushyant Chipalkatty serving as a senior advisor.

According to Rising Pharmaceuticals, combination of the two companies will advance ACETO’s strategy to expand further into the finished dosage pharmaceutical business. This transaction significantly strengthens ACETO’s finished dosage generics business.

ACETO CEO Salvatore Guccione noted that this transaction is another significant step in the strategic transformation of the company that it begans with the acquisition of Rising Pharmaceuticals at the end of 2010.

"It increases our mix of pharmaceutical business, broadens our opportunities for growth and expands our margins. The combination of PACK and RISING doubles our pipeline of generic product offerings, enhances our pool of management talent under Satish Srinivasan’s leadership and further leverages our core competencies in sourcing, regulatory support and quality assurance.

"In addition to widening our product offerings to our existing customers, PACK also presents an initial entrance into the ‘branded generics’ business line," Guccione added.