INSUBCONTINENT EXCLUSIVE:
Zydus Wellness and Cadila Healthcare on Wednesday announced acquisition of Heinz India for Rs 4,595 crore
The deal, Zydus Wellness and Cadila Healthcare said in a joint statement, will include acquisition of brands Complan, Glucon D, Nycil and
Consumer healthcare Zydus Wellness said it has entered into a definitive agreement to acquire Heinz India, a subsidiary of US-based Kraft
Heinz, jointly with Cadila Healthcare
The transaction is proposed to be financed through a mix of equity and debt.The valuation of Rs 4,595 crore includes net working capital of
Rs 40 crore, cash of Rs 15 crore and assumes no debt, the statement added.Zydus Wellness said the deal will unlock value for the company by
regulatory approvals, said Zydus Wellness
It also said the transaction is expected to be EPS- or earnings per share-accretive, which means the deal is expected to add to its
earnings."This is an exciting time
This development offers immense opportunity to broaden our portfolio and invest in brands and products that we believe are most relevant to
health conscious consumers This acquisition will be an ideal addition to Zydus Wellness, supporting our aspirations to grow in the consumer
wellness space by providing multiple choices to consumers," Zydus Wellness chairman Sharvil Patel said.After the acquisition, Zydus Wellness
said it will have consolidated revenue of about Rs 1,700 crore "making it one of the strongest players in the fast growing consumer
healthcare mark".At 12:49 pm, shares in Zydus Wellness were trading 1.6 per cent higher at Rs 1,276 apiece and those in Cadila Healthcare
were down 4.1 per cent at Rs 362 on the NSE
The Nifty - the 50-scrip NSE benchmark index - was up 0.5 per cent at 10,198, after giving up most of the day's gains.
