The transaction, which will be carried out in association with Cadila Healthcare Ltd, values Heinz India at Rs 4595 cr, the company said.
Heinz India’s business comprises the brands Complan, Glucon D, Nycil and Sampriti Ghee, two large manufacturing facilities in Aligarh and Sitarganj and teams devoted to operations, research, sales, marketing and support.
The 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 the January-March period.
For the four brands, Heinz India recorded revenues of about Rs. 1,150 crores and EBIDTA of about Rs. 225 croresfor the 12 months ending June.
Following this acquisition, Zydus Wellness will have consolidated revenues of about Rs. 1700 crores, it said.
The transaction, expected to be EPS accretive, is proposed to be financed by a mix of equity and debt, the company said.
“Select leading private equity firms have committed to partnering the transaction by way of equity support,” it said.
“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,” it pointed out.
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.
It is one of the leaders in health drinks, especially for children, while Nycil, a prickly heat powder launched in 1951, is No.1 in its category.
Sampriti is a premium ghee offering.