Zydus Wellness shares soar 3% on acquiring Naturell (India) for Rs 390 cr

Zydus Wellness share price: Consumer goods company Zydus Wellness soared up to 3.06 per cent to hit an intraday high of Rs 1,942.10 per share on Thursday, October 31, 2024.

 

The rise in the share price came after the company announced that it has acquired 100 per cent stake in Naturell (India) Private Limited (NIPL), including its wholly owned subsidiary, for Rs 390 crore.

 

In an exchange filing, Zydus Wellness said, “This is to inform that the Board of Directors of Zydus Wellness Limited (“the Company” or “the Purchaser”) at their meeting held today i.e. October 30, 2024 has approved entering into the Share Purchase Agreement (“SPA”) with the Promoters and other shareholders (“the Sellers”) of Naturell (India) Private Limited (“the Target”) to acquire 1,50,78,605 equity shares of Rs 1 each fully paid-up (“the Sale Shares”), representing 100 per cent of the paid-up share capital of the Target, from the Sellers at a consideration of Rs 390 crore and subject to the terms and conditions as mentioned in the SPA.” 

 

NIPL's portfolio features brands like Ritebite Max Protein, which offers protein-fueled healthy snacks, and Ritebite, known for its fiber-enriched snacks. The company began operations in 2003 and entered the healthy snacking market in 2007. The recent acquisition aligns perfectly with Zydus Wellness’ strategic vision, allowing it to expand into the rapidly growing healthy snacking segment and enhance its presence in the consumer wellness industry. 

 

“We believe that this acquisition is an opportunity to expand our portfolio by investing in brands and products that resonates with our company’s portfolio and today’s health-conscious consumers. By leveraging our proven track record of innovation, and comprehensive brand offerings, we are well-positioned to meet and exceed the evolving health and wellness needs of our consumers. This acquisition represents a strategic addition to Zydus Wellness, perfectly aligning with our aspirations to expand within the consumer wellness space. We extend a warm welcome to the employees, consumers, partners and all stakeholders of NIPL to the Zydus family,” said Sharvil Patel, chairman, Zydus Wellness.

 

Additionally, the transaction will be funded entirely in cash and is projected to be earnings per share (EPS) accretive for Zydus Wellness starting in the year following the acquisition, the company claimed.

 

On being acquired, Vijay Uttarwar, founder of Naturell (India) Private Limited said, “Zydus has a proven track record of entering early in niche and emerging segments and successfully transforming them into major brands. Our company is thrilled and excited to be a part of the Zydus Wellness family. We are confident that with access to the wide distribution network, strong supply chain and marketing capability our product portfolio will be able to scale newer heights. Zydus Wellness will also bring in systems and processes essential for a company looking to scale-up.”

 

Zydus Wellness Limited, part of the Zydus Group, is among the leading Indian consumer companies focused on providing health and wellness-oriented products across two primary segments including Food & Nutrition segment and Personal Care segment.

 

At 10:03 AM, Zydus Wellness shares were trading 2.73 per cent higher at Rs 1,935.85 per share. In comparison, BSE Sensex was trading 0.22 per cent lower at 79,764.39 levels.