Wednesday, 24 October 2018

Zydus to buy Heinz India Business

Zydus wellness, a part of the Ahmedabad headquartered Zydus group, announced plans to acquire Heinz India, known for its brands like Complan, Glucon D, Nycil and Sampriti Ghee.

Apart from the four iconic brands, Heinz India’s business comprises two large manufacturing facilities in Aligarh and Sitarganj and teams devoted to operations, research, sales, marketing and support. Heinz India also has a strong network of over 800 distributors and more than 20,000 wholesalers covering 29 states.
For the four brands, Heinz India recorded revenues of about Rs 1,150 crores and EBIDTA of about Rs 225 crores for the 12 month period ending 30 June 2018. Following this acquisition, Zydus Wellness will have consolidated revenues of about Rs 1,700 crores. 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 acquired brands have a strong market presence and a legacy of over 50 years. Glucon D, first launched in 1933, is the leader in the energy drinks segment in India. Complan, a household brand in the health food drink category, was introduced in India in 1969 as a milk-based health food drink. Launched in 1951, Nycil is the number one prickly heat powder with a pan-India presence.

Zydus Wellness has a presence in food, nutrition and the skin care markets and owns brands like Sugar Free, EverYuth and Nutralite. This will be the second acquisition for Zydus Wellness following the acquisition of Nutralite, India’s largest selling premium healthy fat spread, in 2006.

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