REUTERS: Indian consumer company Zydus Wellness Ltd and Cadila Healthcare Ltd will jointly buy the India business of Kraft Heinz Co for 45.95 billion rupees ($627.18 million), expanding their product portfolio in the domestic market.
The acquisition will give Zydus and Cadila access to brands such as malt-based health drink Complan, energy drink Glucon-D, talcum powder Nycil and clarified butter brand Sampriti Ghee.
The valuation of nearly 46 billion rupees includes net working capital of 400 million rupees and cash of 150 million rupees. It does not assume any debt, Zydus said in a statement on Wednesday.
The deal is expected to add to earnings and will be financed through a mix of equity and debt. Zydus expects the deal to close in the fourth quarter of the current fiscal year.
Shares of Zydus were trading 1.7 per cent higher while those in Cadila were down 2.7 per cent, in tandem with other healthcare stocks.