Udaipur-based agrochemicals maker PI Industries Ltd on Wednesday (June 26) said its board of directors approved the acquisition of Plant Health Care Plc (PHC) for approximately 32.8 million pounds. This move aims to enhance PI’s capabilities in providing integrated solutions for sustainable agriculturePHC, an AIM UK-listed company, operates subsidiaries in the US, Brazil, Mexico, and several other countries. The company is known for its products, intellectual property, and experience in protein/peptide technology within the agricultural biological space.

Over the past few years, PHC’s technology has gained significant traction, particularly with registering and commercialising its patented PREtec peptide products.

PHC boasts a strong research and development base in the US, and its products have been well received by growers in key markets, including the US, Brazil, Europe, and Mexico. For the year ending December 31, 2023, PHC reported consolidated revenue of $11 million with a gross margin of 60%.

PI’s growth in biologicals has been consistent, with a portfolio of eight products and many more in the development and registration pipeline. Revenue from biological products increased by approximately 29% in FY24.
With PHC, PI will gain access to biological/peptide technology platforms in the “Plant Immunity Inducers” space. Combining these with other complementary technologies and a pipeline of chemical products, PI will have a “double engine” to create a portfolio of products that will feed into the well-oiled sales engines in India and key international markets.

The acquisition will be executed through a wholly-owned international subsidiary of PI Industries. The purchase consideration will be paid in cash and funded from previous Qualified Institutional Placement (QIP) proceeds.

The completion of the acquisition is subject to several conditions, including the scheme’s effectiveness through a UK court process and approval by a majority of PHC shareholders holding at least 75% of the shares. The transaction is expected to be finalised by the second quarter of fiscal year 2025.

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