ACETO Board Takes Proactive Steps to Address Business and Financial Challenges
Negotiation of Waiver with Lenders; Reduction of Dividend
Announced Nonreliance on Prior Full-Year Earnings Guidance
Names Alan Levin Non-Executive Vice Chairman
Initiates Evaluation of Strategic Alternatives
ACETO’s Board of Directors has taken several immediate and proactive steps to address these developments:
- The Company is having productive discussions with its secured lenders regarding implementation of a covenant waiver for the third fiscal quarter of 2018.
- To provide appropriate assurances to its lenders, to fortify the balance sheet and to preserve the Company’s liquidity position, the Board anticipates a significant reduction of the Company’s dividend going forward.
- The Board announced the appointment of
Rebecca Roofas Interim CFO and the resignation of CFO Edward Borkowski, who has decided to pursue another opportunity. Ms. Roof is a highly experienced finance professional and a Managing Director at AlixPartners LLP. While at AlixPartners, Ms. Roof has served as Interim Chief Financial Officer of the Eastman Kodak Company, Atkins Nutritionals, Anchor Glass Corporation, Fleming Foods, and several privately held entities. Her pharmaceutical and specialty chemicals experience includes leadership roles at Taro Pharmaceuticalsand LyondellBasell, also while at AlixPartners.
- The Board has named Director
Alan Levinas Non-Executive Vice Chairman of the Board effective today. Alan Levinfirst joined the ACETO Board in December 2015and became Lead Independent Director in July 2016. Prior to joining the ACETO Board, Mr. Levin held various financial positions of increasing responsibility with Pfizer, Inc.including Chief Financial Officer (2005-2007), and was Chief Financial Officer at Endo Health Solutions from 2009-2013.
- The Board is directing that the Company suspend providing further financial guidance for at least the balance of the fiscal year.
- The Board has initiated a process to identify and evaluate a range of strategic alternatives. Strategic alternatives to be considered may include the sale of a key business segment(s), a merger or other business combination with another party, continuing as a standalone entity or other potential alternatives.
- The Company has retained
PJT Partnersas its financial advisor and Lowenstein Sandler LLPas its legal counsel to assist in this strategic review process.
The Company is in the process of finalizing the actual amount of the impairment charges. The Company expects that the analysis supporting the impairment will be completed in time to allow for its recording in the third quarter of FY18.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements as that term is defined in the federal securities laws, including statements regarding the amount of the anticipated impairment charge, the modification of the dividend and the evaluation of strategic alternatives. The events described in forward-looking statements contained in this news release may not occur. Generally, ACETO’s forward-looking statements relate to our business plans or strategies, projected or anticipated benefits or other consequences of ACETO’s plans or strategies, financing plans, projected or anticipated benefits from acquisitions that
Any one or more of these uncertainties, risks and other influences could materially affect ACETO’s results of operations and whether forward-looking statements made by
Source: Aceto Corporation