Zydus Wellness to acquire Heinz India business for Rs 4,595 crore
Zydus Wellness will now own iconic brands such as Complan, Glucon-D and Nycil
Published - 24-October-2018
Zydus Group’s wellness arm Zydus Wellness Limited is all set to acquire 100 per cent equity share capital of Heinz India Private Limited, the Indian arm of American food and beverages giant Kraft Heinz, according to media reports. The acquisition will be done with Zydus Wellness Limited will jointly with Cadila Healthcare Ltd. The acquisition will include brands Complan, Glucon-D, Nycil and Sampriti Ghee to Zydus Cadila
The transaction, which is reportedly said to be worth Rs 4,595 crore, is expected to close in early 2019 subject to regulatory approvals of the Competition Commission of India and other customary closing conditions.
In a regulatory filing, the company has, however, informed that the transaction is proposed to be financed by a mix of equity and debt.
Media reports quoted the company as saying that select private equity firms have committed to partnering the transaction by way of equity support. The transaction is expected to be EPS accretive.
The acquisition will reportedly include two manufacturing facilities in Aligarh and Sitarganj.
Bernardo Hees, Chief Executive Officer of Kraft Heinz, reportedly said, “The sale of this niche business fits into our overall global growth strategy and our focus on investing in and growing brands within our core categories.”
“India continues to be a key market for Kraft Heinz, and in fact, we’re strengthening our commitment to expand and grow our Heinz sauces and Kraft business in India,” Hees added.