PI Industries plans to acquire Plant Health Care Plc for 32.8 million pounds

27 Jun 2024 , 01:55 PM

On Wednesday (June 26), Udaipur-based agrochemicals company PI Industries Ltd said that its board of directors has authorised the acquisition of Plant Health Care Plc (PHC) for approximately 32.8 million pounds. This move intends to improve PI’s ability to provide integrated solutions for sustainable agriculture.

PHC, an AIM UK-listed company, with subsidiaries in the United States, Brazil, Mexico, and several other countries. The company is well-known for its products, intellectual property, and experience with protein/peptide technology in the agricultural biological arena.

PHC’s technology has gained tremendous traction in recent years, particularly through the registration and commercialization of its patented PREtec peptide products.

PHC has a strong R&D base in the United States, and its products have received positive feedback in important regions such as the United States, Brazil, Europe, and Mexico. For the fiscal year ended December 31, 2023, PHC recorded consolidated revenue of $11 million with a 60% gross margin.

PI’s expansion in biologicals has been consistent, with an eight-product portfolio and several more under development and registration. Revenue from biological products grew nearly 29% in FY24.

By combining these with other complimentary technologies and a pipeline of chemical products, PI will have a “double engine” to generate a portfolio of products that will feed into well-oiled sales engines in India and important overseas markets.

The acquisition will take place through PI Industries’ wholly-owned overseas subsidiary. The purchase price will be paid in cash and funded with previous Qualified Institutional Placement (QIP) revenues.

The acquisition is subject to a number of conditions, including the scheme’s efficacy through a UK court process and acceptance by a majority of PHC shareholders who own at least 75% of the shares. The transaction is expected to be completed by the second quarter of Fiscal Year 2025.

At around 1.34 PM, PI Industries was trading 1.59% higher at ₹3,835.85 per piece, against the previous close of ₹3,775.95 on NSE. The counter touched an intraday high and low of ₹3,950, and ₹3,830, respectively.

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