PI Industries plans to acquire the Active Pharmaceuticals Ingredients (API) business division of Ind Swift Laboratories Ltd (ISLL) on a slump sale on a going concern basis at an agreed enterprise value of Rs 1,530 crore.

In a regulatory filing, PI Industries has stated that ISSL is engaged in the business of manufacturing and export of Active Pharmaceuticals Ingredients (API), and Advanced Intermediaries. It caters to the API needs of regulated and soft-regulated markets.

The turnover of the API business division of ISLL stood at Rs 856.58 crore which constituted 100 per cent of the company’s consolidated turnover for FY21 and EBITDA of Rs 202 crore.

PI Industries Limited (PI) expects to create significant value by leveraging combined capabilities and unlock synergies. The API business of ISLL has a diversified portfolio of 20+ products with leadership positions (global top 5) in several of them and good R&D product pipelines. PI has also developed a strong R&D pipeline of products and complementary technologies over the last few years. The introduction of new and cutting-edge technologies will also enable building a differentiated and sustainable relationship with global customers backed by quality and efficiency.

For ISLL the reason for the slump sale is to raise funds to facilitate repayment of debt and making the company debt-free.

According to regulatory filings by PI Industries, the purchase consideration will be paid in an all-cash transaction subject to regulatory approvals. The transaction is expected to be earnings accretive with immediate effect.