Zydus Cadila to buy Heinzs India business

Zydus Wellness today announced that it has entered into an agreement to acquire the subsidiary of Kraft Heinz, Heinz India Private Limited, jointly with Cadila Healthcare, at a valuation of Rs 4,595 crore ($629 million). Heinz India's business comprises brands like Complan, Glucon D, Nycil and Sampriti Ghee. For the four brands, Heinz India recorded revenues of about Rs 1,150 crore ($20 million) and EBIDTA of about Rs 225 crore ($4 million) for the 12-month period ending 30 June 2018. Heinz India also has a strong distribution network of over 800 distributors, more than 20,000 wholesalers covering 29 states. The transaction is expected to close in the fourth quarter of this fiscal, subject to regulatory approvals, Zydus said. Following this acquisition, Zydus Wellness will have consolidated revenues of about Rs 1,700 crore ($233 million). Zydus wellness said, “The transaction is expected to be EPS accretive. 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.”