Kraft Heinz to sell India-made brands for $625 million
The Kraft Heinz Co. has announced a deal to sell off several Indian brands for $625 million.
Zydus Wellness Ltd. will acquire Complan, Glucon-D, Nycil and Sampriti in a deal that the maker of Heinz ketchup and Kraft macaroni and cheese said it expects to close in early 2019, pending regulatory approvals.
“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, in a prepared statement.
Complan is a brand of milk drinks marketed as helping with nutrition and growth, and GluconD is a line of energy drinks, according to the company’s website. Nycil is a line of skin care products.
In recent quarterly filings, Kraft Heinz has noted that it has been seeing “continued declines in nutritional beverages in India.”
Mr. Hees said the move did not signal an exit from India. “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,” he said.
The company estimated the business being sold generates about $150 million in net sales, and it shouldn’t have a material impact on Kraft Heinz’s annual results.
The deal involves selling the brands and two plants. About 900 employees are connected with the operations.
Kraft Heinz, which has dual headquarters in Pittsburgh and Chicago, is scheduled to release third-quarter earnings results Nov. 1.