PITTSBURGH – The Kraft Heinz Co. has agreed to sell some of its Indian brands to Zydus Wellness Ltd. jointly with Cadila Healthcare Ltd. in a transaction valued at approximately 46 billion Indian rupees ($625 million) on a debt- and cash-free basis. The transaction is expected to close in early 2019 and remains subject to regulatory approvals and other closing conditions.
Under the terms of the agreement, Kraft Heinz is selling 100 percent of its equity shares in Heinz India Private Ltd., which includes the brands Complan, Glucon-D, Nycil and Sampriti, and two manufacturing facilities, with approximately 900 employees associated with the brands and operations.
The business generates approximately $150 million in net sales and approximately $30 million in adjusted EBITDA at current foreign currency exchange rates. The sale is not expected to have a material impact on Kraft Heinz's fiscal-year results.
Sampriti is a brand of ghee. Complan is a nutritious milk drink for children. Glucon-D is a line of beverage enhancers. Nycil is a personal care product.
The buyer, Zydus Wellness, is a leading company in the Indian consumer health market with products that include Sugar Free, a sugar substitute, and Nutralite, a butter substitute.
“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 Bernardo Hees, CEO 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.”