Business Combinations

12 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business Combinations

(3) Business Combinations

PACK Pharmaceuticals, LLC

On April 30, 2014, Rising Pharmaceuticals, Inc. (“Rising”), a wholly owned subsidiary of Aceto, acquired 100% of the issued and outstanding membership interests of PACK Pharmaceuticals, LLC (“PACK”). PACK, a national marketer and distributor of generic prescription and over-the-counter pharmaceutical products, had headquarters in Buffalo Grove, Illinois, a suburb of Chicago, Illinois. The Company believes that the acquisition of PACK by Rising has advanced Aceto’s strategy to expand further into the finished dosage pharmaceutical business. PACK and Rising had very similar business models including operating their businesses in collaboration with selected pharmaceutical development partners and with networks of finished dosage form manufacturing partners, focusing on niche products and selling generic prescription products and over-the-counter pharmaceutical products under their respective labels to leading wholesalers, chain drug stores, distributors and mass market merchandisers. The purchase price was approximately $91,596, which was comprised of the issuance of 260 shares of Aceto common stock, valued at $5,685, and a cash payment of approximately $85,911. The purchase agreement also provided for a three-year earn-out of up to $15,000 in cash based on the achievement of certain performance-based targets. As of June 30, 2016 and 2015, the Company accrued $0 and $783 respectively, related to this contingent consideration. In the third quarter of fiscal 2016 and the fourth quarter of fiscal 2015, the Company reversed $833 and $3,468, respectively, of contingent consideration due to management’s evaluation and assessment of the performance-based targets. The $833 and $3,468 reversals are included in selling, general and administrative expenses in the Consolidated Statements of Income for the years ended June 30, 2016 and June 30, 2015 respectively.

Other

On December 10, 2013, the Company acquired all of the outstanding stock of a company in France which has been accounted for as a business combination. In the third quarter of fiscal 2016, the Company recorded $241 reversal of contingent consideration related to this acquisition due to management’s evaluation and assessment of the potential earnout amounts defined in the purchase agreements. The $241 reversal is included in selling, general and administrative expenses in the Consolidated Statements of Income for the year ended June 30, 2016.