Excl: Punjab Chem buys 30% stake in US firm

Agrochemicals firm Punjab Chemicals and Crop Protection (PCCPL) has acquired a 30% stake in US-based Source Dynamic LLC for an undisclosed sum.

PCCPL also has an option to acquire the remaining 70% stake in the US firm. It is also planning to invest $25 million to expand the US operations.

PCCPL is a leading manufacturer of basic industrial chemicals, and is also into production of active ingredients for crop protection like insecticides, herbicides and fungicides.

This is the company's third major acquisition within the last nine months. In August, the Mumbai-based firm had acquired Belgium-based Pegevo Beheer BV for 40 million euro, and had acquired Argentina-based Sintesis Quimica for $10 million in December 2006.

Source Dynamic is a privately held company, and the acquisition was executed through PCCPL's wholly-owned European subsidiary, SD Agchem.

Shalil S Shroff, managing director, PCCPL, confirmed the development. He, however, did not disclose the size of the deal.

"The acquisition will enable us to increase our footprint in the US. We will also invest an additional $25 million in the US markets to strengthen our sales and marketing in the country," Shroff said.

The company already has a joint venture agreement with Source Dynamic through its US subsidiary PSD LLC, and would look at selling its range of products - herbicides, industrial chemicals and pharmaceuticals - through the acquired company in the American market, which is estimated to be around $15 billion.