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Kraft Heinz to sell Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Wellness Limited

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The Company announced that it has entered into a definitive agreement to sell Indian brands , Glucon-D, and to at a valuation of approximately Rs 46 billion on a debt free and cash free basis. The transaction is expected to close in early 2019, subject to regulatory approvals of the Competition Commission of India and other customary closing conditions.

Kraft Heinz to sell Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Wellness Limited
The Kraft Heinz Company announced that it has entered into a definitive agreement to sell Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Cadila at a valuation of approximately Rs 46 billion on a debt free and cash free basis

“The sale of this niche business fits into our overall global growth strategy and our focus on investing in and growing brands within our core categories,” said , Chief Executive Officer of Kraft Heinz. “India continues to be a key market for Kraft Heinz, and in fact, we’re strengthening our commitment to expand and grow our Heinz sauces and Kraft business in India.”

At current FX rates, this business generates approximately Rs 11.50 billion in net sales and approximately Rs 2.25 billion in adjusted EBITDA. The sale is not expected to have a material impact on Kraft Heinz’s annual financial results.

Under the terms of the agreement, Kraft Heinz will sell to (jointly with Cadila Healthcare Limited), 100 pc of its equity shares in Heinz India Private Limited, which is comprised of Complan, Glucon-D, Nycil and Sampriti brands, and two manufacturing facilities, with approximately 900 employees associated with these brands and operations.

served as exclusive financial advisor to Kraft Heinz for this transaction, while India-based Cyril and global law firm , served as legal advisors for Kraft Heinz.