- 28 Apr 2023
- ICICIdirect Research
PI Industries acquires TRM, Archimica to strengthen its CDMO business
PIIND - 3668 Change: 8.85 (0.24 %)News: PI Health Sciences (PIHS), a wholly owned subsidiary of PI Industries (PI), has executed definitive documents with the following: 1. Therachem Research Medilab LLC (“TRM”) for acquiring its wholly owned subsidiaries in India (TRM India and Solis Pharma Chem) and assets in the US. The purchase consideration for the same is $5 crore and an additional payment upto $2.5 crore in performance linked pay outs over the next six years. 2. Plahoma Twelve GmbH for acquiring 100% stake in Archimica S.p.A (“Archimica”).The purchase consideration for the same is €3.42 crore. The purchase consideration will be paid in cash and funded from the completed Qualified Institutional Placement (QIP) proceeds and internal accruals
View: These proposed acquisitions could be a step towards mitigating dependence on Agrochem CDMO business .This will also help deployment of QIP funds which remained unused for quite some time on the balance sheet thereby improving return ratios for the company
Impact: Positive