PI Industries of India acquires PHC for £32.8 million, targeting $18 billion biopesticide market

On June 26, India's PI Industries Limited announced that its board of directors has approved the acquisition of Plant Health Care Plc (PHC), a company listed on the UK AIM Market, for £32.8 million. The acquisition is expected to close in the second quarter of fiscal 2025, subject to UK court proceedings and approval by a majority of shareholders holding at least 75% of the shares

PHC is a leading company in the field of agricultural biotechnology, focusing on the research and development of protein/peptide technologies, and has won wide recognition for its PREtec peptide products in key markets such as the United States, Brazil and Mexico. For the year ended December 31, 2023, PHC achieved consolidated revenue of approximately $11 million with a gross margin of 60%.

PI Industries' acquisition is highly aligned with the company's strategic goal of building differentiated and integrated sustainable agriculture solutions. By integrating PHC's expertise in the "Plant Immune Inducers" technology platform, PI Industries will be able to form a "twin engine" of biotechnology and innovative chemical products, adding new vitality to its product portfolio in the Indian and international markets.

The biologics market is growing at a compound annual growth rate of 13% and is expected to reach a size of $18 billion by 2028, with the US and Latin American markets accounting for 52% of the global market. PI Industries has experienced solid growth in the biologics segment, currently has eight product portfolios and more products in the development and registration stages, and its biologics product revenue grew by approximately 29% in fiscal year 2024.

PI Industries said the acquisition will help unlock long-term value and accelerate the company's growth, driving the development of sustainable agriculture. PHC is equally optimistic about the transaction and believes that PI Industries will provide strong support for the next stage of the company's development. 

The transaction will be executed by a wholly owned subsidiary of PI Industries and will be funded from the proceeds of a previous Qualified Institutional Placement (QIP).