Coromandel International and EID-Parry (India) rose by 2.75% to 3.24% at 13:50 IST on BSE after Coromandel International signed a term sheet to acquire the bio-pesticides business from EID-Parry (India) through a slump sale.
The announcement was made after market hours on Friday, 22 December 2017.Coromandel International (up 2.75%) and EID-Parry (India) (up 3.24%), edged higher.
Meanwhile, the S&P BSE Sensex was down 40.62 points, or 0.12% at 33,899.68.
Coromandel International signed a term sheet to acquire the bio-pesticides business from EID-Parry (India) together with its wholly-owned subsidiary Parry America, Inc, USA through a slump sale. The transaction is valued at Rs 338 crore (subject to changes in working capital), which includes purchase of bio-pesticides business of EID-Parry together with its research and development (R&D) unit, captive plantations and its wholly-owned subsidiary Parry America, Inc. This transaction is subject to receipt of approval of the shareholders and other relevant authorities.
The bio-pesticides business is engaged in the manufacture and marketing of Neem based Azadirachtin technical and formulations, plant extract based bio-stimulants, micronutrients, microbials, etc. and has brands that are well established in India and globally. The business has a manufacturing facility in Tamil Nadu and manufactures Azadirachtin using technology sourced from Trifolio, Germany.
Parry America, Inc, a 100% subsidiary of EID-Parry headquartered in US sources Azadirachtin technical from bio-pesticides business in india, formulates and markets the products in North and South America, Canada and adjacent markets of USA.
Coromandel International, India's second largest phosphatic fertiliser player, is in the business of fertilisers, specialty crop protection and rural retail. The company manufactures a wide range of fertilizers, making it a leader in its addressable markets.
EID-Parry (India) is a significant player in sugar. It has nine sugar factories having a capacity to crush 43,700 tonnes of cane per day, generate 160 MW of power and four distilleries having a capacity of 234 KLPD.
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