Zdyus Wellness Ltd has announced its plans of acquiring the subsidiary of Kraft Heinz, Heinz India Private Limited, jointly with Cadila Healthcare Ltd., at a valuation of Rs 4595 crore.
The valuation includes the net working capital of Rs 40 crores, cash of Rs. 15 crores and assumes no debt. The acquisition would be including two large manufacturing facilities of Heinz India in Aligarh and Sitarganj and the teams have devoted for operations, research, sales, marketing and support.
The distribution network of Heinz India is of more than 800 distributors and more than 20,000 wholesalers thereby covering all the 29 states.
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For the four brands, Heinz India has recorded the revenues of about Rs. 1150 crores and EBIDTA of nearly Rs. 225 crores for the 12 month periods those end on 30th of June. Following this acquisition, Zydus Wellness will have consolidated revenues of about Rs. 1700 crores, it said.
The transaction is proposed of financing by the mix of debt and equity. The company said the acquisition has an attractive fit in terms of well-entrenched brands in the fast growing categories of food, nutrition and skin care as well as complementary distribution capabilities. The acquired brands have a strong market presence and a legacy of over 50 years.
In 1933, Glucon D was first launched and is said to be the leader in energy drinks segment in India. Secondly, Complan is a household brand in the category of health food drink category that was introduced in 1969 in India as a milk based health food drink.
“Today, Complan is considered to be one of the strongest brands associated with nutrition and health benefits and has a high spontaneous recall of nearly 90% in India. Launched in 1951, Nycil is the number one prickly heat powder with a pan India presence. Sampriti, premium ghee offers immense opportunities for growth in the large retail segment,” the statement said.
The Chairman of Zydus Wellness Ltd. Sharvil Patel said these developments are offering immense opportunity to broaden the portfolio of the company and to invest in different brands and products those the company believes are most relevant to health conscious consumers. Zydus Wellness has brands like Sugar Free, EverYuth and Nutralite.
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