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Report Date : |
07.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
ACETO CORPORATION |
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Registered Office : |
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Country : |
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Date of Incorporation : |
13.06.1947 |
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Legal Form : |
Public Company |
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Line of Business : |
Subject engaged in sourcing, marketing, selling, and distributing pharmaceutical
intermediates and active ingredients, finished dosage form generics,
nutraceutical products, agricultural protection products, and specialty
chemicals. |
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|
|
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No. of Employees : |
234 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
United States - ECONOMIC OVERVIEW
The
|
Source : CIA |
Company name: ACETO CORPORATION
Address: 4 Tri Harbor Court, Port Washington,
NY 11050 - USA
Telephone: +1
516-627-6000
Fax: +1 516-627-6093
Website: www.ACETO.COM
Corporate ID#: 80014
State:
Judicial form: Public Company (Nasdaq = ACET)
Date incorporated: 06-13-1947
Stock Value: 40,000,000
shares at USD 0.01= par value
2,000,000
shares at USD 2.50= par value
Name of manager: Salvatore
GUCCIONE
Business:
Aceto Corporation engages in sourcing, marketing, selling, and
distributing pharmaceutical intermediates and active ingredients, finished
dosage form generics, nutraceutical products, agricultural protection products,
and specialty chemicals.
The company operates in three segments: Human Health, Pharmaceutical
Ingredients, and Performance Chemicals.
The Human Health segment supplies raw materials used in the production
of nutritional and packaged dietary supplements, including vitamins, amino acids,
iron compounds, and bio chemicals used in pharmaceutical and nutritional
preparations. This segment markets and distributes its generic prescription and
over the counter pharmaceutical products to wholesalers; chain drug stores;
distributors; mass market merchandisers; and others.
The Pharmaceutical Ingredients segment offers active pharmaceutical
ingredients and pharmaceutical intermediates to various generic drug companies.
The Performance Chemicals segment provides specialty chemicals, such as antioxidants,
photo initiators, catalysts, curatives, brighteners, and adhesion promoters,
which make plastics, surface coatings, textiles, fuels, and lubricants; diazos
and couplers used in microfilms and blueprints, as well as in the photo tooling
of printed circuit boards; and organic intermediates and colorants. Its raw
materials are also used in electronic parts and binders. This segment also
offers agricultural protection products comprising herbicides, fungicides, and
insecticides, which control weed growth and the spread of insects and
microorganisms; and sprout inhibitor for potatoes.
Aceto Corporation serves a range of companies, including small trading
and fortune 500 companies in the industrial chemical, agricultural, and human
health and pharmaceutical industries worldwide.
The company was founded in 1947 and is headquartered in
EIN: 11-1720520
Staff: 234
Operations & branches:
At the headquarters, we
find the corporate office and warehouse, owned.
The Company moved from
Shareholders:
The Company is listed with
the Nasdaq under syombol ACET.
As of 09-30-2013, 61% of
the stock was held by institutional and mutual fund owners, including:
|
Wellington
Management Company, LLP |
8.11% |
|
Dimensional
Fund Advisors LP |
7.05% |
|
Opus
Capital Group, LLC |
5.55% |
|
Northern
Trust Corporation |
3.63% |
|
BlackRock Institutional Trust Company, N.A. |
3.03% |
Management:
Salvatore J. GUCCIONE, President, Director and CEO
Mr. Salvatore J. Guccione has been the Chief Executive Officer at Aceto
Corp. since January 2013.
Mr. Guccione served as the President and Chief Operating Officer of
Aceto Corp., since December 2011. Mr. Guccione serves as the Chief Executive
Officer at WIL Research Holding Company Inc. at WIL Research Laboratories LLC.
He served as an Operating Partner at Arsenal Capital Partners Inc. Mr. Guccione
joined the firm in 2010 and focused on investments in specialty industrials and
healthcare. He served as the Chief Financial Officer and Senior Vice President
at ISP Chemco Inc. from December 8, 2004 to October 2005. Mr. Guccione served
as the Senior Vice President and Chief Financial Officer at International
Specialty Holdings Inc. since December 8, 2004. He served as the Executive Vice
President, Corporate Strategy and Development at Cambrex Corp. from December
2002 until November 2004, and was responsible for their acquisition and
divestiture program; corporate strategic planning and growth; and certain
general management functions.
Mr. Guccione joined Cambrex Corp. in December 1995 and served in various
roles of increasing responsibility including, Vice President of Corporate
Development, Senior Vice President of Corporate Development and from May 2001
through December 2002, Senior Vice President and Chief Financial Officer where
he worked in areas of capital and financial planning and analysis, financial
reporting, treasury, investor relations and risk management. He was employed by
International Specialty Holding’s parent, International Specialty Products Inc.
and its predecessor from 1987 through 1993 as Director, Mergers and
Acquisitions and Corporate Development and from 1993 through December 1995 as
Vice President and General Manager for Personal Care Products.
Mr. Guccione is a Director of Royal Adhesives & Sealants, LLC, since
December 15, 2010 and DG3 Holdings. Previously, he served as a Director of ISP
Chemco Inc. since December 8, 2004. Mr. Guccione has been a Director at Aceto
Corp. since May 2011.
Mr. Guccione received M.B.A. in Finance from New York University Stern
School of Business and a B.S. degree in Chemical Engineering from
Douglas ROTH is the CFO.
Subsidiaries
And partnership:
|
Acci Realty Corp. |
|
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Aceto (Holding) B.V. |
The |
|
Aceto ( |
|
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Aceto Agricultural Chemical Corporation Limited |
|
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Aceto Agricultural Chemicals Corp. |
|
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Aceto B.V. |
The |
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Aceto FineChem GmbH |
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Aceto |
|
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Aceto Health Ingredients GmbH |
|
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Aceto Holding GmbH |
|
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Aceto Ltd. |
|
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Aceto |
|
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Aceto Agricultural Chemicals Corp. Mx, S De R. L. DE C.V |
|
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Aceto Pharma Corp. |
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Aceto Pharma India Pvt. Ltd. |
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Aceto Pharmaceutical ( |
|
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Aceto Pharma GmbH |
|
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Aceto Pte Ltd. |
|
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Aceto Realty LLC |
|
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Arsynco, Inc. |
|
|
Canegrass, LLC |
|
|
Pharma Waldhof GmbH |
|
|
Plexvest Ltd. |
|
|
Rising Pharmaceuticals, Inc. |
|
On attachment:
- 10K 2012-2013 (fiscal
year ending June)
|
Currency
in |
As of: |
Jun
30 |
Jun
30 |
Jun
30 |
Jun
30 |
|
TOTAL REVENUES |
346.6 |
412.4 |
444.4 |
499.7 |
|
|
NET INCOME |
6.6 |
9.0 |
17.0 |
22.3 |
|
Banks: JPMorgan Chase Bank
…
Legal filings & complaints:
State:
Case number: 9:12-cv-81253-KAM
Plaintiff: Aceto Corporation
Defendant: TherapeuticsMD, Inc. et al
Kenneth A. Marra, presiding
William Matthewman, referral
Date filed: 11/13/2012
Date of last filing: 10/15/2013
Cause: Trademark infringement
Secured debts summary (UCC):
|
Standard
& Poor’s
|
|
|
Publication
date: 05-Aug-2011 20:13:14 EST |
·
We have also removed both the short- and long-term ratings
from CreditWatch negative.
·
The downgrade reflects our opinion that the fiscal
consolidation plan that Congress and the Administration recently agreed to
falls short of what, in our view, would be necessary to stabilize the
government's medium-term debt dynamics.
·
More broadly, the downgrade reflects our view that the
effectiveness, stability, and predictability of American policymaking and
political institutions have weakened at a time of ongoing fiscal and economic
challenges to a degree more than we envisioned when we assigned a negative
outlook to the rating on April 18, 2011.
·
Since then, we have changed our view of the difficulties in
bridging the gulf between the political parties over fiscal policy, which makes
us pessimistic about the capacity of Congress and the Administration to be able
to leverage their agreement this week into a broader fiscal consolidation plan
that stabilizes the government's debt dynamics any time soon.
·
The outlook on the long-term rating is negative. We could
lower the long-term rating to 'AA' within the next two years if we see that
less reduction in spending than agreed to, higher interest rates, or new fiscal
pressures during the period result in a higher general government debt
trajectory than we currently assume in our base case.
The transfer and convertibility (T&C) assessment of the
debt service--remains
'AAA'.
We lowered our long-term
rating on the U.S. because we believe that the prolonged controversy over
raising the statutory debt ceiling and the related fiscal policy debate
indicate that further near-term progress containing the growth in public
spending, especially on entitlements, or on reaching an agreement on raising
revenues is less likely than we previously assumed and will remain a
contentious and fitful process. We also believe that the fiscal consolidation
plan that Congress and the Administration agreed to this week falls short of
the amount that we believe is necessary to stabilize the general government
debt burden by the middle of the decade.
Our lowering of the
rating was prompted by our view on the rising public debt burden and our
perception of greater policymaking uncertainty, consistent with our criteria
(see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011,
especially Paragraphs 36-41). Nevertheless, we view the U.S. federal
government's other economic, external, and monetary credit attributes, which
form the basis for the sovereign rating, as broadly unchanged.
We have taken the ratings
off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment
of 2011 has removed any perceived immediate threat of payment default posed by
delays to raising the government's debt ceiling. In addition, we believe that
the act provides sufficient clarity to allow us to evaluate the likely course
of U.S. fiscal policy for the next few years.
The political brinksmanship of recent months highlights what we see as
America's governance and policymaking becoming less stable, less effective, and
less predictable than what we previously believed. The statutory debt ceiling
and the threat of default have become political bargaining chips in the debate
over fiscal policy. Despite this year's wide-ranging debate, in our view, the
differences between political parties have proven to be extraordinarily difficult
to bridge, and, as we see it, the resulting agreement fell well short of the
comprehensive fiscal consolidation program that some proponents had envisaged
until quite recently. Republicans and Democrats have only been able to agree to
relatively modest savings on discretionary spending while delegating to the
Select Committee decisions on more comprehensive measures. It appears that for
now, new revenues have dropped down on the menu of policy options. In addition,
the plan envisions only minor policy changes on Medicare and little change in
other entitlements,
the containment of which
we and most other independent observers regard as key to long-term fiscal
sustainability.
Our opinion is that
elected officials remain wary of tackling the structural issues required to
effectively address the rising U.S. public debt burden in a manner consistent
with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011,
especially Paragraphs 36-41). In our view, the difficulty in framing a
consensus on fiscal policy weakens the government's ability to manage public
finances and diverts attention from the debate over how to achieve more
balanced and dynamic economic growth in an era of fiscal stringency and
private-sector deleveraging (ibid). A new political consensus might (or might
not) emerge after the 2012 elections, but we believe that by then, the government
debt burden will likely be higher, the needed medium-term fiscal adjustment
potentially greater, and the inflection point on the U.S. population's
demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now,"
June 21, 2011).
Standard & Poor's
takes no position on the mix of spending and revenue measures that Congress and
the Administration might conclude is appropriate for putting the U.S.'s
finances on a sustainable footing.
The act calls for as much
as $2.4 trillion of reductions in expenditure growth over the 10 years through
2021. These cuts will be implemented in two steps: the $917 billion agreed to
initially, followed by an additional $1.5 trillion that the newly formed
Congressional Joint Select Committee on Deficit Reduction is supposed to
recommend by November 2011. The act contains no measures to raise taxes or
otherwise enhance revenues, though the committee could recommend them.
The act further provides
that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion
will be implemented over the same time period. The reductions would mainly
affect outlays for civilian discretionary spending, defense, and Medicare. We
understand that this fall-back mechanism is designed to encourage Congress to
embrace a more balanced mix of expenditure savings, as the committee might
recommend.
We note that in a letter
to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated
total budgetary savings under the act to be at least $2.1 trillion over the
next 10 years relative to its baseline assumptions. In updating our own fiscal
projections, with certain modifications outlined below, we have relied on the
CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to
include the CBO assumptions contained in its Aug. 1 letter to Congress. In
general, the CBO's "Alternate Fiscal Scenario" assumes a continuation
of recent Congressional action overriding existing law.
We view the act's
measures as a step toward fiscal consolidation. However, this is within the framework
of a legislative mechanism that leaves open the details of what is finally
agreed to until the end of 2011, and Congress and the Administration could
modify any agreement in the future. Even assuming that at least $2.1 trillion
of the spending reductions the act envisages are implemented, we maintain our
view that the U.S. net general government debt burden (all levels of government
combined, excluding liquid financial assets) will likely continue to grow.
Under our revised base case fiscal scenario--which we consider to be consistent
with a 'AA+' long-term rating and a negative outlook--we now project that net
general government debt would rise from an estimated 74% of GDP by the end of
2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign
indebtedness is high in relation to those of peer credits and, as noted, would
continue to rise under the act's revised policy settings.
Compared with previous
projections, our revised base case scenario now assumes that the 2001 and 2003
tax cuts, due to expire by the end of 2012, remain in place. We have changed
our assumption on this because the majority of Republicans in Congress continue
to resist any measure that would raise revenues, a position we believe Congress
reinforced by passing the act. Key macroeconomic assumptions in the base case
scenario include trend real GDP growth of 3% and consumer price inflation near
2% annually over the decade.
Our revised upside
scenario--which, other things being equal, we view as consistent with the
outlook on the 'AA+' long-term rating being revised to stable--retains these
same macroeconomic assumptions. In addition, it incorporates $950 billion of
new revenues on the assumption that the 2001 and 2003 tax cuts for high earners
lapse from 2013 onwards, as the Administration is advocating. In this scenario,
we project that the net general government debt would rise from an estimated
74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside
scenario--which, other things being equal, we view as being consistent with a
possible further downgrade to a 'AA' long-term rating--features less-favorable
macroeconomic assumptions, as outlined below and also assumes that the second
round of spending cuts (at least $1.2 trillion) that the act calls for does not
occur. This scenario also assumes somewhat higher nominal interest rates for
U.S. Treasuries. We still believe that the role of the U.S. dollar as the key
reserve currency confers a government funding advantage, one that could change
only slowly over time, and that Fed policy might lean toward continued loose
monetary policy at a time of fiscal tightening. Nonetheless, it is possible
that interest rates could rise if investors re-price relative risks. As a
result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in
10-year bond yields relative to the base and upside cases from 2013 onwards. In
this scenario, we project the net public debt burden would rise from 74% of GDP
in 2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios
also take into account the significant negative revisions to historical GDP
data that the Bureau of Economic Analysis announced on July 29. From our
perspective, the effect of these revisions underscores two related points when
evaluating the likely debt trajectory of the U.S. government. First, the
revisions show that the recent recession was deeper than previously assumed, so
the GDP this year is lower than previously thought in both nominal and real
terms. Consequently, the debt burden is slightly higher. Second, the revised
data highlight the sub-par path of the current economic recovery when compared
with rebounds following previous post-war recessions. We believe the sluggish
pace of the current economic recovery could be consistent with the experiences
of countries that have had financial crises in which the slow process of debt
deleveraging in the private sector leads to a persistent drag on demand. As a
result, our downside case scenario assumes relatively modest real trend GDP
growth of 2.5% and inflation of near 1.5% annually going forward.
When comparing the U.S.
to sovereigns with 'AAA' long-term ratings that we view as relevant
peers--Canada, France, Germany, and the U.K.--we also observe, based on our
base case scenarios for each, that the trajectory of the U.S.'s net public debt
is diverging from the others. Including the U.S., we estimate that these five
sovereigns will have net general government debt to GDP ratios this year
ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%.
By 2015, we project that their net public debt to GDP ratios will range between
30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at
79%. However, in contrast with the U.S., we project that the net public debt
burdens of these other sovereigns will begin to decline, either before or by
2015.
Standard & Poor's
transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment
reflects our view of the likelihood of the sovereign restricting other public
and private issuers' access to foreign exchange needed to meet debt service.
Although in our view the credit standing of the U.S. government has
deteriorated modestly, we see little indication that official interference of
this kind is entering onto the policy agenda of either Congress or the
Administration. Consequently, we continue to view this risk as being highly
remote.
The outlook on the
long-term rating is negative. As our downside alternate fiscal scenario illustrates,
a higher public debt trajectory than we currently assume could lead us to lower
the long-term rating again. On the other hand, as our upside scenario
highlights, if the recommendations of the Congressional Joint Select Committee
on Deficit Reduction--independently or coupled with other initiatives, such as
the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal
consolidation measures beyond the minimum mandated, and we believe they are
likely to slow the deterioration of the government's debt dynamics, the
long-term rating could stabilize at 'AA+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
UK Pound |
1 |
Rs.99.59 |
|
Euro |
1 |
Rs.83.63 |
INFORMATION DETAILS
|
Report Prepared by
: |
NLM |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.