PI Industries - Twin Acquisition In Pharma To Remove Overhang: Prabhudas Lilladher

Prabhudas Lilladher Report

PI Industries Ltd. in a press release announced acquisition of two entities through its 100% owned subsidiary PI Health Science in pharma space for a combined consideration of ~Rs 7.1 billion (excluding Rs 2 billion of performance linked payouts over next six years) to be funded through internal accruals and qualified institutional placement proceeds (Rs 20 billion raised in July 2020).

The transaction includes:

1. Therachem Research Medilab’s two wholly-owned subsidiaries in India and certain assets in U.S. and

2. Archimica SPA.

Cash purchase consideration of-

1. $50 million for TRM US’ subsidiaries with an additional performance-linked payout not exceeding $25 million over next six years and

2. € 34.2 million for Archimica.

PI Industries expects deal completion in Q1 FY24 to be earnings accretive from immediate effect.

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