Gurugram : PI Industries Limited (PI), has executed a Business Transfer Agreement (BTA) with Ind-Swift Laboratories Limited (ISLL) for acquisition of their API and Intermediates business undertaking on a slump sale going concern basis.
The overall purchase consideration for the target undertaking is to be INR 1530 crores on debt and cash free basis subject to closing adjustments. ISLL is planned to be acquired through PI’s Fully owned subsidiary. The purchase consideration will be paid in all-cash and funded from the proceeds of the completed Qualified Institutional Placement (QIP) and internal accruals. The transaction is expected to be earnings accretive with immediate effect.
The transaction includes entire API Undertaking covering 2 manufacturing plants located at Dera Bassi, Punjab and Jammu & Kashmir, R&D set up in Mohali, Punjab with strong product pipeline, customer and vendor contracts, and sales, marketing & distribution networks spanning more than 70 Countries serving more than 200+Global Customers.
The consummation of the transaction and integration into corporate structure of PI is expected to be completed during Q3FY22 subject to fulfilment of customary closing conditions and regulatory approvals.