Zydus Cadila to Sell India-Focused Animal Health Business to Consortium Led by Multiples Alternate Asset Management


Zydus Animal Health and Investments Limited (ZAHL), a wholly owned material subsidiary of Cadila Healthcare Limited, has entered into a Business Transfer Agreement (BTA) and other ancillary agreements (“Final Agreements”) to sell and transfer its established animal health markets company (“Company” or Zydus AH) to the consortium led by Multiples Alternate Asset Management (“Multiples”). Zydus AH is ZAHL’s animal health business focused on India and certain other countries. The consortium, comprising the Canada Pension Plan Investment Board (“CPP Investments”) and RARE Enterprises (“RARE”), agreed to purchase the business through a SPV controlled by them, on behalf of Zenex Animal Health India Private Limited.

The deal is to sell one of ZAHL’s two business ventures, called Animal Health Established Markets Enterprise on a collapsed sales basis as an operating business, for a lump sum of Rs. 2,921 crore on a basis Cash free and debt free, subject to certain closing date adjustments and other conditions.

Zydus AH is the second largest and one of the fastest growing animal health companies in India. The company occupies a leading position on a wide range of therapeutic and nutritional products for the livestock and poultry segments. It employs around 700 people and has a manufacturing plant in Haridwar. The transaction involves the transfer of real estate assets, movable assets, inventories, trademarks and intangible assets, contracts, licenses and authorizations, commercial documents, employees as well as funds from employee benefits, insurance policies, other assets and liabilities assumed.

Mr. Pankaj Patel, President of Cadila Healthcare Ltd., said: “Over the past 3 decades, Zydus AH has become a pioneer and market leader in the Indian animal health industry. Multiples and its consortium partners are committed to growing the business, we are confident that Zydus AH will continue to grow and strengthen its position in the industry. “

Dr. Arun Atrey, Managing Director of ZAHL, said: “Zydus AH has a very strong franchise in the market and is extremely well positioned to take advantage of the continued growth of the industry in India and select export markets. We expect this process to be transparent to our customers, suppliers and other stakeholders, with no disruption to our operations. “

Commenting on the transaction, Ms. Renuka Ramnath, Founder and CEO of Multiples Alternate Asset Management, said: “Zydus AH is a strong leader in the Indian animal health market with strong brands, a comprehensive product portfolio and an extensive network. of distribution. We are delighted to support Zydus AH’s highest quality management team led by Dr Arun Atrey and to be able to invest in a business that helps farmers improve their productivity and income by providing solutions. innovative animal health.

“I expect Multiples to make many such large transactions in the years to come. We are also delighted to partner with CPP Investments and RARE companies 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, ”added Ms. Ramnath.

Mr. Rakesh Jhunjhunwala, Partner, RARE Enterprises, said: “We are delighted to partner with CPP Investments and Multiples to invest in a leading company in the market, in a segment that has enormous growth potential and has a top quality management team.

ZAHL has another animal health business that is slated to start animal health business in the United States and some European countries and this business is not part of the transaction. Zydus continues to develop commercial animal health products for these markets and currently this business is in the development and investment phase.

Business transfer details

Multiples, along with its consortium partners, will acquire 100% of Zydus AH’s business through a collapse sell transaction. The transaction is subject to closing conditions and receipt of all statutory and other approvals and is expected to be completed within 90 days.

For Zydus, Moelis & Co, Mumbai acted as investment banker and Cyril Amarchand Mangaldas & Co. acted as legal advisers.

Shares of CADILA HEALTHCARE LTD. was the last BSE trade at Rs.629.7 from the previous close of Rs. 624. The total number of shares traded during the day was 929,198 in over 17,522 trades.

The stock hit an intraday high of Rs. 632.95 and an intraday low of 622.5. The net turnover during the day was Rs. 583 685 688.


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