Zydus Wellness to buy Heinz India for Rs 4,595 cr

In a major deal, Zydus Wellness Wednesday announced acquiring Heinz India's consumer wellness business, that includes popular brands Complan and Glucon D, in a transaction worth Rs 4,595 crore.

Zydus Wellness jointly with Cadila Healthcare has signed definitive pacts to acquire Heinz India for Rs 4,595 crore that includes net working capital of Rs 40 crore, cash of Rs 15 crore and assumes no debt, the companies said in separate regulatory filings.

Heinz India is a subsidiary of the US-based Kraft Heinz. Cadila Healthcare holds majority stake in Zydus Wellness.

The transaction is expected to close by March quarter of this financial year, Zydus Wellness said in a statement.

The acquisition will include Heinz India's popular brands such as Complan, Glucon D, Nycil and Sampriti Ghee, it added.

"The transaction is proposed to be financed by a mix of equity and debt. Select leading private equity firms have committed to partnering the transaction by way of equity support. The transaction is expected to be EPS accretive," the statement said.

Heinz India's business includes large manufacturing facilities in Aligarh and Sitarganj and teams devoted to operations, research, sales, marketing and support, it added.

Heinz India has a strong distribution network of over 800 distributors, more than 20,000 wholesalers covering 29 states, the statement said.

Zydus Wellness Chairman Sharvil Patel said: "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."
When asked whether Zydus would also bid for another health drink Horlicks, which is believed to be on the shelves from its promoter, Patel said:"No. We are not. For the time and strategic rationale, this brand (Complan) makes more sense for us."