Cadila to sell Indian animal health business to Multiples PE-led consortium for $396m

Photo: Monika Kubala / Unsplash.com

Zydus Animal Health and Investments Ltd (ZAHL), a wholly-owned subsidiary of Cadila Healthcare Ltd, has entered into an agreement to sell its Animal Healthcare Established Markets Undertaking (Zydus AH) to a consortium led by private equity firm Multiples Alternate Asset Management for Rs2,921 crore.

Zydus AH is the animal health business of ZAHL focused on India and certain other countries.

The consortium, including Canada Pension Plan Investment Board and Rakesh Jhunjhunwala’s RARE Enterprises, has agreed to purchase the business through a special-purpose veZenex Animal Health India Pvt. Ltd.

“Zydus AH is the second-largest and one of the fastest-growing animal health businesses in India. The business enjoys leadership position across a wide spectrum of therapeutic and nutritional products for livestock and poultry animal segments. It employs approximately 700 people and has one manufacturing facility in Haridwar,” Cadila said in a statement.

“Over the last three decades, Zydus AH has grown to become a pioneer and market leader in the Indian animal health industry. 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,” said Pankaj Patel, chairman of Cadila Healthcare Ltd.

For the fiscal ending 31 March 2020, the business reported a revenue of Rs513.3 crore and an Ebitda of Rs87.6 crore.

“ZAHL initiated the process to look for strategic and/or financial partners who share the same values and growth ambition for the business with an intention to invite them to take equity stake in ZAHL. During the process, ZAHL realized that the preference of the investors was to get the majority or total and absolute control of the business of its Animal Healthcare Established Markets Undertaking (rather than becoming a significant minority partner in ZAHL),” the company said.

ZAHL has another animal healthcare business undertaking which is expected to commence animal health business in the US and certain European countries, which is not part of the transaction. Zydus continues to develop the animal health business products for those markets and at present, this business is in the development and investment phase, the company said.

“Zydus AH is a strong leader in the Indian animal health market with strong brands, comprehensive product portfolio and extensive distribution network,” said Renuka Ramnath, founder and chief executive officer, Multiples Alternate Asset Management.

“I expect Multiples to do many such large transactions in the coming years. We are also delighted to partner with CPP Investments and RARE enterprises for our first consortium deal. We look forward to working with them, and help the Company unlock its full potential and create value for all stakeholders,” she added.

The article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.