PI executes offer for acquisition of 100 pc stake in Isagro Asia

Agri-sciences major PI Industries Ltd has executed an offer with Italy-based Isagro SpA for the acquisition of Isagro Asia's business.

The transaction value is estimated at Rs 345 crore net of cash and debt subject to closing adjustments. The business will be acquired by PI Industries directly or through its subsidiary. Isagro Asia is engaged in contract manufacturing, local distribution, and exports of agrochemicals.

The consummation of the proposed transaction is expected in the third quarter (October to December) subject to finalisation of definitive agreements, customary closing conditions, and regulatory approvals. The companies have entered into an exclusivity agreement for this purpose.

"PI Industries sees encouraging growth opportunities across its business model and seeking initiatives to augment business progress. The proposed acquisition will provide PI access to additional manufacturing capacities to meet the growing demand of global customers and synergy benefits of adjacent manufacturing site while de-risking the supply chain of few products," it said in a statement.

"In addition, this will also help PI strengthen its position in the Indian market by leveraging complementary product portfolio and distribution channel of Isagro Asia."

With a strength of over 2,300 employees, PI Industries has three formulation facilities and nine multi-product plants. It has a research and development facility at Udaipur with a dedicated team of over 250 scientists and chemists.

In the financial year ended March, it clocked revenues of Rs 2,841 crore and profit after tax of Rs 408 crore.