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LAKE SUCCESS, N.Y., Dec 11, 2009 (GlobeNewswire via COMTEX News Network) -- Aceto Corporation (Nasdaq:ACET), a global leader in the sourcing, quality assurance, regulatory support, marketing and distribution of chemically derived pharmaceuticals, nutraceuticals, specialty chemicals and crop protection products, today announced that its Board of Directors has declared a regular semi-annual dividend of $0.10 per common share which represents an approximate 4% dividend yield. The cash dividend will be distributed on January 15, 2010 to shareholders of record as of December 24, 2009.
Albert Eilender, Non-Executive Chairman of the Board of Aceto, stated, "We recognize that in the short term our earnings are not sufficient to support this dividend level. However, with our strong cash position and confidence in our long term ability to increase earnings, we felt it appropriate to maintain the current dividend payment. We thank our investors for their continuing support and believe that today's Board action is an acknowledgment of the importance our dividend has to our shareholders."
Stock Repurchase Authorization
The Board of Directors also reaffirmed its current stock repurchase authorization, which is scheduled to expire in May 2011. Under the stock repurchase program, the Company is authorized to purchase up to 4,051,000 shares of common stock in open market or privately negotiated transactions at prices not to exceed the market value of the common stock at the time of such purchases. The Company intends to purchase shares in open market transactions, however, the timing and actual number of shares purchased will depend on a variety of factors including price, corporate and regulatory requirements including blackout periods, alternative investment opportunities and other market and economic conditions.
Commenting on the repurchase authorization, Mr. Eilender stated, "A share buyback program is another way for the Company to create value for our shareholders. We do not anticipate that this program will compromise our ability to invest in our core businesses or to pursue attractive external opportunities as they present themselves."
ABOUT ACETO
Aceto Corporation, incorporated in 1947, is a global leader in the sourcing, quality assurance, regulatory support, marketing and distribution of chemically derived pharmaceuticals, nutraceuticals, specialty chemicals and crop protection products. With a physical presence in ten countries, Aceto distributes over 1,000 chemicals and pharmaceuticals used principally as raw materials in the pharmaceutical, crop protection, surface coating/ink and general chemical consuming industries. Aceto's global operations, including a staff of 26 in Shanghai and 14 in India, enable its worldwide sourcing and regulatory capabilities. (ACET-F)
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. These forward-looking statements are based on current expectations, estimates and projections of management. Aceto intends for these 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, statements regarding our current and future dividend decisions, our anticipated repurchases under our share buyback program and the effect of the program on our investment and acquisition opportunities. All forward-looking statements in this press release are made as of the date of this press release, and Aceto assumes no obligation to update these forward-looking statements whether as a result of new information, future events or otherwise, other than as required by law. 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, the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings are available at www.sec.gov.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Aceto Corporation
CONTACT: Aceto Corporation Theodore Ayvas, Director of Corporate Communications & Investor Relations (516) 627-6000 www.aceto.com
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