Neogen Chemicals Limited (“the Company”) has acquired 4,69,26,000 (100%) Equity Shares of a face value of Rs. 10 each, of BuLi Chemicals India Private Limited (“BuLi Chem”) from Livent USA Corporation (formerly known as FMC Lithium USA Corporation) and Livent Corporation (formerly known as FMC Lithium USA Holding Corporation) (“Selling Shareholders”) for an amount of Rs. 19.35 crores, pursuant to the working capital adjustments on the closing date i.e. May 3 2023 (“Acquisition”) and the terms of the Share Purchase Agreement dated March 4, 2023 (“SPA”). Pursuant to the said transaction BuLi Chem has become a Wholly Owned Subsidiary of the Company.
BuLi Chem owns technology to manufacture N Butyl Lithium and other organolithium products using Lithium metal, which are key reagents for Lithiation reaction used in manufacturing of several complex pharmaceutical and agrochemical intermediates. BuLi Chem manufactures and supplies N Butyl Lithium to several leading pharma and agrochemical companies in India and world, and is one of the very few commercial facilities outside of China for this chemistry. BuLi Chem achieved a trunover of Rs 82.03 crores in FY23.
Organo Lithium compounds are critical in manufacturing of several critical Pharmaceuticals. The technology to use highly reactive Lithium metal and to manufacture N Butyl Lithium and other Organo Lithium derivatives in house along with Neogen’s ability to recycle Lithium, will give significant competitive advantage for Neogen’s existing and under development Pharma Advanced intermediates and CSM projects.
Be First to Comment