PI Industries announces acquisition of Plant Health Care to boost sustainable agriculture solutions
PI Industries Limited, a prominent Indian agri-sciences company, has made a strategic move to acquire UK-listed Plant Health Care Plc (AIM: PHC.L) for approximately £32.8 million. This acquisition is set to enhance PI Industries’ capabilities in providing integrated solutions for sustainable agriculture, emphasizing their long-term commitment to innovative agricultural technologies.
Plant Health Care, known for its leading-edge expertise in protein/peptide technology within the agricultural biological sector, has seen significant growth and traction in recent years. The company has successfully registered and commercialized its patented PREtec peptide products, which have garnered widespread acceptance among growers in major markets including the US, Brazil, Europe, and Mexico. With a strong R&D base in the US, Plant Health Care reported consolidated revenue of approximately USD 11 million with an impressive gross margin of 60% for the year ending December 31, 2023.
The acquisition aligns perfectly with PI Industries’ strategy to build a differentiated portfolio of sustainable agricultural solutions. PI Industries has shown consistent growth in the biologicals sector, with a portfolio of 8 products and many more in development and registration stages. In the fiscal year 2024, the company’s revenue from biological products increased by about 29%.
The transaction, proposed through a wholly-owned international subsidiary of PI Industries, will be funded from the proceeds of a previous Qualified Institutional Placement (QIP). The completion of this acquisition is contingent upon approval through a UK court process, requiring majority shareholder consent, and is expected to finalize by the second quarter of FY25.
Mayank Singhal, Vice Chairman & Managing Director of PI Industries, expressed enthusiasm about the acquisition, stating, “We are very pleased to join forces with Plant Health Care, whose technology solutions perfectly align with our purpose of reimagining a healthier planet and offering sustainable solutions for the future of agriculture. This investment underscores our confidence in their technology platform and by joining forces, we can amplify our collective impact and bring groundbreaking solutions to farmers worldwide.”
Rajnish Sarna, Joint Managing Director of PI Industries, also highlighted the strategic benefits, noting, “Acquisition of Plant Health Care is a strategic move to expand our portfolio in the agri-tech sector. We believe synergies between our organizations will unlock long-term value and accelerate growth. Together, we will drive significant advancements in sustainable agriculture.”
This strategic acquisition by PI Industries not only enhances its product offerings but also strengthens its position in the rapidly growing global market for biological agricultural solutions, which is expected to reach US$18 billion by 2028. By integrating Plant Health Care’s advanced peptide technologies with its existing chemical product lines, PI Industries is poised to create a robust ‘double engine’ of growth, catering to the increasing global demand for sustainable agricultural practices.