Cadila Healthcare on Wednesday said its wholly-owned 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 Rs 2,921 crore.
The consortium, including Canada Pension Plan Investment Board and RARE Enterprises, has agreed to purchase the undertaking through an 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 Rs 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.
Multiples Alternate Asset Management Founder and CEO Renuka Ramnath said, "We are excited to back Zydus AH's top quality management team led by Dr. Arun Atrey and be able to invest in a business that has been helping farmers enhance their productivity and incomes by delivering innovative animal health solutions."
On the development, RARE Enterprises Partner Rakesh Jhunjhunwala said, "We are delighted to partner with CPP Investments and Multiples in investing into a market leading business, in a segment which has huge growth potential and has a top quality management team." Zydus Animal Health and Investments Ltd (ZAHL) has another animal healthcare business undertaking which is expected to commence animal health business in the US and certain European countries and this business undertaking is not part of the transaction, Cadila Healthcare said.
ZAHL continues to develop the animal health business products for those markets and at present, this business is in the development and investment phase, it added.
Shares of Cadila Healthcare were trading at Rs 656.75 per scrip on BSE, up 4.30 percent from its previous close.