LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Dec. 15, 2003-- Acquisition Will Create Commercial Relationship between Aceto and Roche
Aceto Corporation (Nasdaq:ACET), a global distributor of pharmaceutical and specialty chemicals, today announced that it signed a definitive agreement to acquire Pharma Waldhof, an ultimate subsidiary of Roche Holding AG, Switzerland, for an undisclosed amount. Aceto will fund the acquisition with cash on hand and will not incur or assume any debt in connection with the transaction.
Based in Dusseldorf, Germany, Pharma Waldhof distributes biologically-derived active pharmaceutical ingredients (APIs) currently used in therapeutic and diagnostic products. It is a worldwide provider of a patent-protected, biologically-derived API used for a widely used diagnostic and therapeutic heart medication. Pharma Waldhof's primary customers include major worldwide ethical and generic pharmaceutical companies. In 2002, Pharma Waldhof had sales of about Euro 9.8 million. Once completed, the acquisition will be immediately accretive to Aceto's earnings. It is expected that all current Pharma Waldhof personnel will stay with the Company.
Additionally, this acquisition will foster a continuing relationship between Aceto and Roche, whereby Roche will continue to manufacture the principal biopharmaceutical APIs that Pharma Waldhof distributes and provide certain other services.
Leonard S. Schwartz, Chairman, CEO and President of Aceto, stated, "The acquisition of Pharma Waldhof will spearhead our entry into the biopharmaceuticals market, broaden our product offerings to the pharmaceutical industry, complement our strong position in chemically-derived APIs, and strengthen our stance as an early participant in the generic biopharmaceutical business. Furthermore, the acquisition establishes a strategic relationship with Roche. We are enthusiastic about working with Roche, and are hopeful that the relationship will lead to additional collaborative activities between our companies."
With regard to Aceto's strategy for the biopharmaceutical market, Mr. Schwartz commented, "Initially, we plan to leverage Aceto's worldwide sourcing and distribution capabilities and our extensive customer base to grow Pharma Waldhof's existing biopharmaceutical business as well as introduce new products. We will also consider additional acquisitions in this marketplace. Ultimately, our goal is to capitalize on Aceto's position as a major supplier to worldwide generic drug manufacturers to capture share in the generic biopharmaceutical market as it develops. The wholesale dosage form biopharmaceutical market is estimated at $26 billion, with APIs representing about 20-50% of that. We will focus on those products whose patents are expiring in the near-term and ones for which the patents have already expired, while awaiting regulatory mechanisms in both the US and EU which will allow the generic biopharmaceutical market to develop. It is our feeling that these regulatory modifications will occur over the near-term in both markets. We feel strongly that the biopharmaceuticals market, and the emerging generic segment in particular, represent substantial growth opportunities for Aceto."
Closing of the acquisition is anticipated to take place on or about December 31, 2003. There can be no assurance given, however, that the acquisition will ultimately be effected.
Aceto Corporation, which was incorporated in 1947, is a global leader in the distribution and marketing of pharmaceutical and specialty chemicals used principally in the agricultural, color, pharmaceutical, surface coating/ink and general chemical industries. With offices in nine countries, Aceto Corporation distributes over 1,000 chemicals in these and other fields. For more information, please visit www.aceto.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to, the plan to enter into the biopharmaceutical market, the expectations of completing the proposed acquisition on or about December 31, 2003, the expectation that all current Pharma Waldhof personnel will stay with the Company, the belief that the acquisition will foster a relationship between Aceto and Roche, and the belief that the acquisition will be immediately accretive to Aceto's earnings. All forward-looking statements in this press release are made as of the date hereof, and the Company assumes no obligation to update these forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. These uncertainties include, but are not limited to, economic and political conditions in the United States and abroad, as well as other risks detailed in the Company's SEC reports, including the Company's Form 10-K and other filings. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov.
Aceto Corporation Leonard S. Schwartz, Chairman/CEO Douglas Roth, CFO 516-627-6000 www.aceto.com or
Investor Relations Counsel: The Equity Group Inc. Loren G. Mortman, 212-836-9604 LMortman@equityny.com or
Lauren Barbera, 212-836-9610 LBarbera@equityny.com www.theequitygroup.com