Agro-sciences Company ,PI Industries Ltd has signed an agreement with Italian company Isagro S.p.A to acquire its Asian subsidiary, Isagro Asia. The PI Industries will acquire Isagro Asia for Rs 345 crore.
PI Industries will acquire 100% shareholding held by Isagro S.p.A in Isagro Asia, either directly or through a subsidiary. The acquisition will help meet growing demand from international customers by getting access to additional manufacturing capacities of Isagro Asia, it added. PI Industries has stated that it sees growth opportunities across its businesses and is looking strengthen its position in Indian market.
The proposed transaction is expected to be completed by the end of December, subject to finalisation of definitive agreements, customary closing conditions and regulatory approvals. The company remains confident of integrating Isagro Asia’s operations with itself in FY20.
Founded in 1947, PI Industries produce complex chemical solutions in agri-sciences. There are three formulation facilities and nine multi-products plants located across three manufacturing locations owned by PI industries. PI Industries has announced the acquisition from Isagro S.p.A. Isagro Asia operates in India and is engaged in contract manufacturing, local distribution and exports of agrochemicals.
Isagro Asia generated revenue of Rs 300 crore in FY19. Of this, 65% was contributed by the domestic formulation business and balance came in from the contract manufacturing business. In the domestic formulation business, Isagro sells in-licensing products, generics products and proprietary patent products. PI intends to leverage its distribution network and firm up its position in the domestic market by leveraging the complementary product portfolio of Isagro Asia.
