Aceto Corp., which recently filed for bankruptcy, agreed to sell its unit Rising Pharmaceuticals Inc. to Shore Suven Pharma Inc. under a stalking horse agreement.
Shore Suven Pharma will acquire the assets of Rising Pharmaceuticals and its subsidiaries for $15 million in cash, and assume certain liabilities.
A stalking horse offer is an initial bid on the assets of a bankrupt company as a way to test the market.
Shore Suven Pharma Inc. is a joint venture formed by India-based Suven Life Sciences Ltd. and Shore Pharma Investments LLC.
Port Washington, N.Y.-based Aceto filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey on Feb. 19. The company expects to close the divestment of Rising Pharmaceuticals before June 30, the end of its fiscal year.
PJT Partners LP is Aceto's financial adviser and investment banker while Lowenstein Sandler LLP is the legal adviser for the sale process. AP Services, an affiliate of AlixPartners LLP, is also serving as adviser to Aceto.
Reed Smith LLP is the legal adviser and Citadel Management Consulting is the financial adviser of Shore Suven Pharma for the transaction.