Zydus Life arm inks pact to acquire 50% stake in Sterling Biotech

Zydus Lifesciences said that its wholly owned subsidiary, Zydus Animal Health and Investments has entered into share purchase and share subscription agreement (SPSSA) with Perfect Day to acquire 50% stake in Sterling biotech.

Sterling Biotech is one of the leading producers of Pharmaceutical Gelatine, Di-calcium phosphate and some APIs. It operates 2 (two) manufacturing facilities in Gujarat. Its turnover was Rs 454.89 crore for FY24.

The company will acquire 321.6 crore equity shares of Rs 1 each for total consideration of Rs 550 crore subject to certain adjustments with respect to cash and debt.

Perfect Day Inc., a Temasek portfolio company will sell its around 50% shareholding in Sterling Biotech. Post this transaction, Sterling Biotech will become a 50:50 joint venture (JV) with equal representation on the board.

 

The JV will establish a manufacturing facility to manufacture fermented animal free protein to cater to the global markets. The JV will accelerate the production of high-quality and ecofriendly protein products, reduce environmental impact, and cater to the growing consumer demand for fermentation-based and ethically sourced nutrition.

The acquisition will also mark Zydus foray into specialised biotech products for health and nutrition, specifically catering to consumers who prefer animal-free protein or suffer from lactose intolerance. Perfect Days precision-fermented protein is found in ice creams, cream cheese, sports nutrition products, and baked goods with high functionality benefits and lower environmental impact.

The said acquisition of sale shares is expected to be completedwithin perion of 60 working days from date of execution of the SPSSA.

Dr. Sharvil Patel, managing director, Zydus Lifesciences, said, We are dedicated to promoting growth through partnerships and are consistently exploring new collaborations to position India as a premier global supply chain hub. We are excited to join forces with Perfect Day and create a win-win combination that leverages both our strengths and expertise to create value for the consumers.

Narayan TM, Interim CEO, Perfect Day said, This partnership allows Perfect Day to significantly boost its capabilities to meet the demands of the fast-growing global market. We deeply value our collaboration with Zydus and believe this joint venture will allow both parties to benefit from each other's expertise.

Zydus Lifesciences is a discovery-driven, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies.

The pharma companys consolidated net profit surged 30.64% to Rs 1,419.9 crore in Q1 FY25 as compared to Rs 1,086.9 crore posted in Q1 FY24. Revenue from operations jumped 20.77% year on year (YoY) to Rs 6,207.5 crore in the quareter ended 30 June 2024.

The counter declined 2.57% to ends at Rs 1,178.65 on Friday, 23 August 2024.

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