According to a report by the Economic Times, Zydus Wellness along with Cadila Healthcare has announced that it would jointly purchase Heinz India Private Limited, a subsidiary of Kraft Heinz for Rs.4,595 crore.
The deal includes cash of Rs.15 crore, net working capital of Rs.40 crore, but will not assume any debt. Zydus Wellness and Cadila Healthcare will also take control of brands like Glucon D, Complan, Nycil, and Sampriti Ghee.
The deal is expected to be financed by a mix of debt and equity. Certain private equity companies have committed to help the transaction take place via equity support.
Heinz India has a network of over 20,000 wholesalers, and 800 distributors spread across 29 states in India.
Zydus Wellness believes that the purchasing of Heinz India will help in their annual turnover increasing to Rs.1,700 crore. Glucon D, Complan, Nycil, and Sampriti Ghee helped Heinz India record EBIDTA of around Rs.225 crore and revenues of around Rs.1,150 crore for the one year period which ended on June 30.
Complan, was one of the most famous health drink brands in India until a decade ago. However, its popularity has since deteriorated as people became conscious about the high sugar content in the product and the health claims made by them.
Glucon D was launched in 1933 and since then has been one of the biggest brands in the energy drink category. Nycil is one of the oldest prickly heat powder to be sold in India and was launched in the year 1951.
Zydus Wellness which will take control of these four brands has already got brands like Nutralite, EverYuth, and Sugar Free in its kitty.
Sources: Economic Times, MoneyControl, FirstPost
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