New Mountain Capital’s Acquisition of ACETO Corporation’s Chemicals Business Assets

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.

ACETO Corporation (OTC: ACETQ), an international company engaged in the development, marketing, sale and distribution of Human Health products, Pharmaceutical Ingredients and Performance Chemicals, has agreed to sell its chemicals business assets to an affiliate of New Mountain Capital (“NMC”), a leading growth-oriented investment firm with over $20 billion in assets under management.

The asset purchase agreement was entered into following the conclusion of a court-supervised sale process conducted under Section 363 of the U.S. 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 U.S. Bankruptcy Court at a hearing scheduled for April 16, 2019, and is expected to close in this calendar quarter, subject to satisfaction of certain conditions.

The Ropes & Gray team was led by mergers & acquisitions partner John Sorkin (Picture), special situations partner Robb Tretter and business restructuring partner Matthew Roose.

Involved fees earner: Matthew Roose – Ropes & Gray; John Sorkin – Ropes & Gray; Robb Tretter – Ropes & Gray;

Law Firms: Ropes & Gray;

Clients: New Mountain Capital;


Author: Ambrogio Visconti