Neogen Chemicals enters into a definitive agreement to acquire 100% stake in BuLi Chemicals India Pvt. Ltd. from Livent

Neogen Chemicals Limited (NSE Code: NEOGEN; BSE Code: 542665) and Livent Corporation (NYSE: LTHM) today jointly entered into a definitive agreement for Neogen to acquire 100% stake in BuLi Chemicals India Pvt. Ltd (BuLi Chem) from Livent.

BuLi Chem owns the 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 across the world, and is built one of the very few commercial facilities outside of China for this chemistry.

Neogen Chemicals (Neogen) is one of India's leading manufacturers of bromine, lithium-based specialty chemicals and advanced intermediates produced using multiple chemistries. This acquisition will boost Neogen's portfolio by offering organolithium derivatives to existing pharma and agrochemical industries and further enhance its advanced intermediates & CSM manufacturing business. More importantly, Neogen will significantly gain from BuLi Chem's established & proven technology expertise for handling lithium metal & organolithium derivatives. Overall, it will unlock deep synergies by complementing the current portfolio.

Commenting on the development, Dr. Harin Kanani, Managing Director at Neogen Chemicals said: "We are glad to be acquiring BuLi Chem, which houses the Indian operations of Livent USA Corp - one of the global leaders in speciality lithium technology. We are happy to welcome the employees of BuLi Chem who have deep experience of more than a decade in handling Organo Lithium Chemistry to the Neogen family. They have managed to develop one of the few facilities outside of China for this chemistry with strong track record in safety and sustainability.

Organo Lithium compounds are important in manufacturing several critical Pharmaceuticals and Agrochemicals intermediates, and we are happy to continue our association and serve this essential need of the society. 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 to our existing as well as under-development Pharma Advanced intermediates and CSM projects, further enhancing our ability to provide value-added innovative solutions to our global customers."

Commenting on the development, Walter Czarnecki, Chief Commercial Officer at Livent said: "We believe this will be a great outcome for all parties. Neogen is focused on the pharmaceuticals and chemicals market in India and shares Livent's commitment to employees and local communities. We look forward to seeing this facility and our former colleagues thrive under the new ownership and will do everything we can to support a smooth transition."

Shares of Neogen Chemicals Limited was last trading in BSE at Rs. 1289.55 as compared to the previous close of Rs. 1313.60. The total number of shares traded during the day was 873 in over 269 trades.

The stock hit an intraday high of Rs. 1323.35 and intraday low of 1284.80. The net turnover during the day was Rs. 1140054.00.

Source : Equity Bulls

Keywords

NeogenChemicals INE136S01016 LiventCorporation Acquisition BuLiChemicalsIndia LTHM