PI Industries completes acquisition of Isagro Asia
The total transaction is valued at Rs 345 crore plus surplus cash on closing date subject to final adjustments for net working capital.
sopurce- public domain
PI Industries has recently completed the process of acquiring Isagro (Asia) Agrochemicals Private Ltd from Isagro Spa and its affiliates. The deal was signed in October 2019. PI Industries is a leading name in the field of agro science and has an integrated approach towards agri sciences business.
The total transaction is valued at Rs 345 crore plus surplus cash on closing date subject to final adjustments for net working capital. Isagro Asia is engaged in contract manufacturing, local distribution and exports of agrochemicals. The company has reported revenue of Rs 314 cr and a net profit of Rs 23 cr for the year ended 31st March 2019. It has a 30-acre manufacturing site including production plants for agrochemical technical and formulations adjacent to PI's manufacturing unit in Pinoli.
Elaborating on the acquisition, Mayank Singhal, VC & MD of PI, says, "I am pleased that our team has successfully completed the transaction within the targeted timelines. This acquisition is one of the strategic initiatives that PI has taken to sustain its growth momentum. We are excited to welcome new members to PI family and will focus on value creation by leveraging both manufacturing and distribution capacities and capabilities of Isagro Asia."
The acquisition provides access to additional manufacturing capacities, synergy benefits of adjacent manufacturing site, long term contract for export of products to Isagro Spa. It will also help PI strengthen its position in domestic market by leveraging complementary product portfolio and pan India distribution channel of the acquired entity.
The leadership roles and organization structures are now clearly defined while the eventual structure and integration of the acquired entity is under process. A global consulting firm has also come aboard to support the integration process.