Excel Crop Care to acquire a division of Excel Industries Ltd

Excel Crop Care Ltd has announced that the Board of Directors of the Company at its meeting held on March 27, 2007 have approved a proposal for acquiring the business of marketing agri input products, such as Soil Enricher, Biopesticides and Plant Growth Promoters, of the Excel Industries Ltd's (EIL) Environment and Biotech Division, w.e.f., April 01, 2007.

The acquisition will also include transfer to the Company of EIL’s trade marks, trade names, brand names, product registration and licenses relating to the concerned products. The new business is expected to add Rs 15-20 crores to the sales turnover of the Company in the financial year 2007-08.

The consideration for the business shall be equivalent to the book value of current assets consisting of stocks and book debts transferred to the Company and annual payment equivalent to 5% of the turnover from the said business for a period of five years.

Shares of Excel Crop Care was trading at Rs.82.05, down by Re.0.40 or 0.49%. The total traded quantity was 533 compared to 2 week average of 6344.

Source : Equity Bulls

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