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Oct 25, 2018 | Zydus buys Complan and Glucon D maker Heinz’s basket of brands

Read More>> In a deal that puts them in a commanding position in the health foods and nutrition space, Zydus Wellness and Cadila Healthcare on Wednesday said they were acquiring Heinz India at a valuation of Rs 4,595 crore. Heinz India is the subsidiary of Kraft Heinz and makes Complan and Glucon D. Zydus Wellness chairman Sharvil Patel said on a television channel the acquisition makes sense given how difficult it is to acquire large brands in consumer space at the right valuation. “The combined entity will have five of the seven brands that are ranked number one and the combined distribution reach will go up to 4.5 lakh points,”Patel said.

Heinz India recorded revenues of around Rs 1,150 crore across four brands — Complan, Glucon D, Nycil and Sampriti Ghee for the 12-month period to June 2018. The earnings before interest, depreciation, tax and amortisation (Ebitda) was Rs 225 crore. Following this acquisition, Zydus Wellness will have consolidated revenues of about Rs 1,700 crore. Patel said the combined entity would have a 20% plus net margin. “We are acquiring Heinz India through a mix of debt and equity and private equity investors may invest in the company. Cadila Healthcare, being a large shareholder of Zydus Wellness, will also look at ingesting some equity,” Patel explained.

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