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Aceto Corp. To Buy Rising Pharmaceuticals For $80 Million

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Aceto Corp. (Nasdaq:ACET), a distributor of pharmaceutical and crop protection products, announced today it has agreed to acquire privately-held Rising Pharmaceuticals for $80 million, including $5 of working capital, in cash and stock. 

Under the terms of the agreement, the $80 million consists of 1 million Aceto shares and the balance in cash.  Aceto, based in Lake Success, New York, may also need to pay up to $6 million based on Rising’s future performance.
 
As of 3:45 pm EST on Wednesday, Aceto’s shares are trading at $8.23, making the stock portion of the deal worth roughly $8.23 million. 

Rising Pharmaceuticals, based in New Jersey, markets and distributes over the counter pharmaceutical products in the United States. Rising is expected to earn about $49 million of revenues for 2010. 

“With Rising as a part of our Health Sciences business segment, we will be able to market finished dosage form pharmaceutical products...”, said  Albert Eilender, Aceto's CEO. 

After the deal closes, Rising Pharmaceuticals will be operated by its current management as a subsidiary of Aceto Corp.  Ronald Gold and David Rosen, senior management members at Rising, will become the COO and Senior Vice President-Business Development of the company, respectively.

The deal is expected to add to earnings in the first year and increasingly accretive afterwards, Aceto said. 

The deal is expected to close by the end of December.

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NASDAQ:ACET
Market: NASDAQ
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