Agchem formulation specialist PI Industries is set to acquire AIM UK-listed biologicals company Plant Health Care (PHC).

PHC produces peptide- and protein-based products used for biocontrol and biostimulants.

The company’s commercial business has been driven by sales of Harpinαβ, a recombinant protein which acts as a biostimulant to promote yield and crop quality, and PHC279, a harpin-derived peptide that boosts a plant’s natural defence against a range of diseases.

PHC products are in key agriculture markets, such as the USA, Brazil, Europe, and Mexico. The company reported revenues of $US 11.2 million for FY 2023 with a gross profit margin of 60%.

Under the terms of the agreement, PHC shareholders will receive 9 pence in cash for each share. The acquisition values PHC at approximately £32.8 million, according to a statement by PI Industries.

In the PI Industries statement, the company said the acquisition would be done through a wholly owned international subsidiary of PI, with the offered purchase consideration of approximately £ 32.8 million paid in cash and funded from the earlier Qualified Institutional Placement (QIP) proceeds. A QIP is a common way for listed companies to raise capital in India and Southeast Asia.

Headquartered in the northern state of Haryana and founded in 1946, PI Industries has two manufacturing units in Gujarat, an R&D site in Rajasthan and overseas office in Germany.

“PHC’s acquisition aligns with PI’s long-term strategic objective to build a differentiated portfolio of integrated solutions for sustainable agriculture,” the company said. Through the acquisition of PHC, PI Industries gains access to peptide technology in the “Plant Immunity Inducers” space.

“PI’s growth in biologicals has been consistent. PI already has a portfolio of 8 products and many more in the development and registration pipeline. Revenue from biological products increased by ~29% in FY24 [sic],” the company said.

PI Industries formed a joint venture with Mitsui Chemicals Agro (MCAG) in 2016 called Solinnos Agros, with the purpose of providing registration services for MCAG in India.

PI Industries lists biostimulant products on its website, which are based on Ascophyllum nodosum seaweed and humic and fulvic acid.