Zydus’s $658 Million Acquisition of Heinz’s India business

Khaitan & Co acted as the exclusive legal advisor and advised Zydus Wellness Limited and Cadila Healthcare Limited.

Zydus Wellness, a part of the Ahmedabad-headquartered Zydus group, executed its acquisition of Heinz India, known for its brands like Complan, Glucon D, Nycil and Sampriti Ghee.

The company entered into a definitive agreement to acquire the subsidiary of Kraft Heinz, Heinz India Private Limited, jointly with Cadila Healthcare Ltd., for a total evaluation of aproximatelly $658 Million.

The transaction was expected to close in the fourth quarter of 2018-19, subject to regulatory approvals, Zydus Wellness said in a media statement.

Apart from the four iconic brands, Heinz India’s business comprises two large manufacturing facilities in Aligarh and Sitarganj and a strong network of over 800 distributors and more than 20,000 wholesalers covering 29 states.

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.

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.

Khaitan & Co advised Zydus Wellness Limited and Cadila Healthcare Limited with a team including Haigreve Khaitan (Picture), Bhavik Narsana, Aravind Venugopal, Minhaz Lokhandwala and Shreya Mukherjee.

Involved fees earner: Haigreve Khaitan – Khaitan & Co.; Bhavik Narsana – Khaitan & Co.; Aravind Venugopal – Khaitan & Co.; Minhaz Lokhandwala – Khaitan & Co.; Shreya Mukherjee – Khaitan & Co.;

Law Firms: Khaitan & Co.;

Clients: Zydus Wellness Ltd; Cadila Healthcare Ltd;

Author: Michael Patrini