Break-up fees are a fairly common practice in M&A consulting. It is entirely possible that a potential acquisition fell through at the last minute, and the services were paid for nonetheless.
Another thing that caught my eye was that, along with strong cash flow, accounts payable had increased significantly.
In my opinion, this suggests at least 60-day payment terms for raw material procurement, which means that the increase in raw material prices was not yet reflected in the Q2 cash flow.