U.S. food company Kraft Heinz Co. plans to sell part of its Indian business, including brands such as malt-based drink Complan and energy drink Glucon-D, for 45.95 billion rupees ($627.18 million).
Indian pharmaceutical and consumer products company Zydus Wellness Ltd and its parent Cadila Healthcare Ltd will jointly buy the assets to expand their portfolio to also include brands such as talcum powder Nycil and clarified butter, Sampriti Ghee.
Kraft Heinz said that the sale of its niche business fits into the company’s overall growth strategy and its focus on investing in and growing brands within its core categories. The company will also sell two manufacturing facilities as part of the deal and it will continue to grow its Heinz sauces and other Kraft businesses in India.
The deal will give Zydus a chance to leverage its position in the health-food and nutrition segment. Zydus will finance the deal, which is expected to add to earnings, through a mix of equity and debt and plans to close it in the fourth quarter of the current fiscal year.