US-based Aceto Corp. is selling its chemicals assets to investment firm New Mountain Capital for $338 million under a “stalking-horse” agreement.

Aceto and its US subsidiaries filed for voluntary bankruptcy under Chapter 11 in a New Jersey court on Feb. 20. The company is focused on the marketing, sale and distribution of human health products (finished dosage form generics and nutraceutical products), pharmaceutical ingredients and performance chemicals (specialties and crop protection products).

The company operates in nine countries, including Germany, the Netherlands, France, China, Singapore, India, the Philippines and the US.

Although not included in the Chapter 11 filings, Aceto’s foreign chemicals subsidiaries will be included in the sale. Aceto also intends to enter into a stalking horse agreement for its New Jersey-based subsidiary, Rising Pharmaceuticals. Both transactions are expected to complete before Aceto’s fiscal year ends on Jun. 30, 2019.

William Kennally III, Aceto’s CEO, said the board has been evaluating strategic alternatives to address its debt burden for several months and has finally decided to pursue a court-supervised sale. He commented: “This decision provides stability and deep capital resources to the company and, importantly, ensures the continuity of customer, partner and supplier relationships critical to the company’s businesses operations and success.”

A syndicate of lenders led by Wells Fargo Bank has committed to provide funds of $60 million to finance Aceto’s working capital needs and support payments to vendors and suppliers while the transactions proceed to completion.