Oct 26, 2018
Kraft Heinz Co has agreed to sell a portfolio of its Indian businesses, including children’s drink brand Complan, to Indian drug maker Zydus Wellness Ltd. The deal with Ahmedabad-based Zydus is at valuation of Rs 4595 crore. This valuation includes net working capital of Rs. 40 crores, cash of Rs. 15 crores and assumes no debt. The transaction is expected to close in Q4 FY 19, subject to regulatory approvals, the company said in a statement. This would bring brands like Complan, Glucon D, Nycil and Sampriti Ghee in its kitty.
The acquisition will also include two large manufacturing facilities of Heinz India in Aligarh and Sitarganj and teams devoted to operations, research, sales, marketing and support. Heinz India has a distribution network of over 800 distributors, more than 20,000 wholesalers covering 29 states. For the four brands, Heinz India recorded revenues of about Rs. 1150 crores and EBIDTA of about Rs. 225 crores for the 12 months period ending June 30.
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.