Cadila Healthcare arm to sell animal health biz for ₹2,921 cr

NEW DELHI: Cadila Healthcare on Wednesday said its whollyowned subsidiary Zydus Animal Health and Investment has entered into definitive pacts for sale of its animal healthcare established markets undertaking to Multiples Alternate Asset Management-led consortium for ₹2,921 crore.

The consortium, including Canada Pension Plan Investment Board and RARE Enterprises, has agreed to purchase the undertaking through a special purpose vehicle (SPV) controlled by them, in the name of Zenex Animal Health India, Cadila Healthcare said in a statement.

Animal Healthcare Established Markets Undertaking (Zydus AH) is focused on India and certain other countries, it added.

The deal is to sell Animal Healthcare Established Markets Undertaking on a slump sale basis as a going concern, for a lump sum consideration of ₹2,921 crore on a cash-free and debt-free basis, subject to certain closing date adjustments and other conditions, Cadila Healthcare said.

Zydus AH employs around 700 people and has one manufacturing facility in Haridwar, it added.

“The transaction involves transfer of immovable assets, movable assets, inventory, brands and intangible assets, contracts, licenses and permissions, business records, employees along with employee benefit funds, insurance policies, other assets and assumed liabilities,” Cadila Healthcare said.

The transaction is subject to closing conditions and receipt of all statutory and other approvals and is expected to be completed within a period of 90 days, it added.

“With multiples and its consortium partners committed to growing the business, we are sure that Zydus AH will continue to grow and strengthen its position in the industry,” Cadila Healthcare chairman Pankaj Patel said.