PI Industries to acquire API biz from Ind-Swift Labs

Ind-Swift Laboratories has agreed to sell its Active Pharmaceuticals Ingredients (API) business to on a slump sale basis, both the companies said in exchange notifications.

The business transfer agreement has been signed at an agreed enterprise value of Rs. 1530 crores subject to customary working capital and other adjustments, the statement said.

The API division has a turnover of Rs 856.58 crore and has an EBITDA of Rs 202 crore.

The transaction is expected to get completed by October 31, the companies said.

ET first reported about the potential sale on January 11.

The sale is to facilitate repayment of all existing debt exposure of the Company and making Company debt Free, Ind-Swift said. The company will ustilise the surplus fnds for strategic acquisition or investments to enhance stakeholders value in long run, Ind Swift said.

“PI Industries expects to create significant value by leveraging combined capabilities and unlock synergies. The API business of Ind-Swift has diversified portfolio of 20+ products with leadership position (global top 5) in several of them and a good R&D product pipeline. PI has also developed strong R&D pipeline of products and complementary technologies over last few years. Introduction of new and cutting-edge technologies will also enable building a differentiated and sustainable relationship with global customers backed by quality and efficiency,” PI Industries said in the notification. Laboratories is a global manufacturer of , Intermediates and formulations. The company has six manufacturing sites across the country. Founders hold 42% in the company. Ind-Swift increased its scale of operations and improved profitability in Q1FY21, CARE Ratings NSE 0.42 % said in a note in September 2020.

The post PI Industries to acquire API biz from Ind-Swift Labs first appeared on WorthStocks - Share Market Tips.

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