Zydus Cadila to sell its Animal Healthcare Established Markets undertaking

For lump sum consideration of Rs 2921 crore

Zydus Animal Health and Investments (ZAHL) a wholly owned material subsidiary of Cadila Healthcare, has entered into a Business Transfer Agreement (BTA) and other Ancillary Agreements (Definitive Agreements) to sell and transfer its Animal Healthcare Established Markets Undertaking (Undertaking or Zydus AH) to Multiples Alternate Asset Management (Multiples) led consortium.

Zydus AH is the animal health business of ZAHL focused on India and certain other countries. The consortium, including Canada Pension Plan Investment Board (CPP Investments) and RARE Enterprises (RARE), has agreed to purchase the Undertaking through an SPV controlled by them, in the name of Zenex Animal Health India.

The deal is to sell one of the two business undertakings of ZAHL, called Animal Healthcare Established Markets Undertaking on a slump sale basis as a going concern, for a lump sum consideration of Rs. 2921 crore on a cash free and debt free basis, subject to certain closing date adjustments and other conditions.

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. 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.

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