Neogen Chemical Soars After Board Approves Acquisition of BuLi Chemicals
- 06-Mar-2023 3:43 PM
- Journalist: Francis Stokes
New Delhi: Neogen Chemicals skyrocketed 5.69% to Rs 1,362.90 following the decision of its board to acquire 100% stake in BuLi Chemicals India for up to Rs 25 crore.
BuLi Chem, a subsidiary of Livent USA Corporation, is one of the few commercial facilities outside of China to manufacture and supply N Butyl Lithium. This technology is a key reagent for lithiation reaction used in the creation of complex pharmaceuticals and agrochemicals. In 2021-2022, BuLi Chem reported a turnover of Rs 65,27,85,364 to several leading companies across India and around the world.
The company has entered into a definitive agreement with Livent Corporation to purchase 4,69,26,000 (100%) shares of BuLi Chem. The transaction is estimated to be completed within the next 60 days from the date of signing the Share Purchase Agreement (SPA). Upon completion of this acquisition, BuLi Chem will become a wholly owned subsidiary of the company. The Board of Directors has also provided its approval for the draft SPA related to this purchase.
Neogen Chemicals is pleased to announce that it has acquired BuLi Chem, the Indian operations of Livent USA Corp - a global leader in specialty Lithium technology. At the helm of this acquisition is Managing Director Dr. Harin Kanani, who expressed his pleasure at the deal. BuLi Chem has been uniquely successful in developing one of the few facilities outside of China for this type of chemistry, and they have a strong track record in safety and sustainability.
We are proud to continue our productive association as industry leaders in providing essential production of Organo Lithium compounds. These compounds are integral to the manufacturing of various pharmaceuticals and agrochemical intermediates. With our proprietary technology using highly reactive Lithium metal, we can produce N Butyl Lithium and other Organo Lithium derivatives in-house, along with our ability to recycle Lithium. This gives us a strong competitive advantage in developing pharmaceutical intermediates and CSM projects.
Walter Czarnecki, chief commercial officer at Livent, has announced that Neogen is focused on the pharmaceuticals and chemicals market in India. Livent shares Neogen's commitment to employees and local communities and looks forward to seeing them thrive under the new ownership. The company will do everything it can to ensure a smooth transition.
Neogen Chemicals, a manufacturer of eco-friendly specialty chemicals for the pharmaceutical, engineering, and agrochemical industries, reported great financial results in their third quarter of FY23. Net profit rose 40.4% to Rs 14.69 crore when compared to the same period last year and net sales jumped 40% year on year to Rs 186.25 crore. This is an incredible feat for Neogen Chemicals and shows just how much potential their specialty chemicals have in the industry.