Zydus Cadila to sell animal health business in India for Rs 2,921 crore

Zydus Animal Health and Investments (ZAHL), a wholly owned subsidiary of Cadila Healthcare (Zydus Cadila), will sell its animal health business to a consortium led by Multiples Alternate Asset Management for almost Rs 3,000 crore.

announced Wednesday that ZAHL has entered into a business transfer agreement and other ancillary pacts to sell and transfer its animal health unit to the consortium led by Multiples. The deal is to sell one of ZAHL’s two business ventures on a collapsed sales basis as an operating company, for Rs 2,921 crore on a cashless, debt-free basis, subject to certain date adjustments. closing and other conditions.

The transaction involves the transfer of real estate assets, movable assets, inventory, trademarks and intangible assets, contracts, licenses and authorizations, business records, employees as well as funds of employee benefits, insurance policies, other assumed assets and liabilities. While Multiples, along with its consortium partners, will acquire 100 percent of the ZAHL unit, the collapse sale transaction is subject to closing conditions and obtaining all statutory and other approvals. It should be completed within 90 days.

The Multiples-led consortium, which includes the Canada Pension Plan Investment Board and RARE Enterprises, has agreed to purchase the business through a special purpose vehicle (SPV) called Zenex Animal Health. India.

Commenting on the matter, President Pankaj Patel said that over the past three decades ZAHL has become a pioneer and one of the market leaders in the Indian animal health industry.

“With Multiples and its consortium partners committed to the growth of the business, we are confident that ZAHL will continue to grow and strengthen its position in the industry.”

One of the fastest growing animal health companies in India, ZAHL claims a leading position in a range of therapeutic and nutritional products for the livestock and poultry segments, employing around 700 people. It has a manufacturing plant in Haridwar. According to Arun Atrey, CEO of ZAHL, the agreement should be transparent to customers, suppliers and other stakeholders, with no disruption to operations.

Multiples Alternate Asset Management founder and CEO Renuka Ramnath said the consortium would be able to invest in a business that helps farmers improve their productivity and income. “I expect Multiples to make many such large transactions in the years to come. We are also delighted to partner with CPPIB and RARE Enterprises for our first consortium agreement. We look forward to working with them and helping the company unlock its full potential and create value for all stakeholders, ”Ramnath added.

Rakesh Jhunjhunwala, partner of RARE Enterprises, said the animal health business segment has “enormous growth potential” as the acquired company has a top quality management team.

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