Kraft Agrees to Sell Package of Indian Assets to Zydus
Kraft Heinz has agreed to sell a portfolio of Indian businesses, including children’s milk drink Complan, to Zydus Wellness.
(Bloomberg) -- Kraft Heinz Co. has agreed to sell a portfolio of Indian businesses, including children’s milk drink Complan, to Zydus Wellness Ltd., people with knowledge of the matter said.
Zydus, which is a unit of Indian drugmaker Cadila Healthcare Ltd., could announce a deal as soon as this week, according to the people, who asked not to be identified because the information is private. It has been discussing a value of about 46 billion rupees ($625 million), one of the people said.
Ahmedabad-based Zydus is in talks to raise private equity funding to cover about half of the purchase price, according to the person.
In addition to the Complan product, the brands being sold include the Glucon D instant energy drink, Nycil talcum powder and Sampriti clarified butter, people with knowledge of the matter said in August. Tata Group, India’s biggest conglomerate, and consumer-goods manufacturer Dabur India Ltd. were also among suitors for the Kraft Heinz businesses, Bloomberg News has reported.
A representative for Kraft Heinz declined to comment. A representative for Zydus didn’t immediately respond to a request for comment. The Times of India reported earlier this month that Zydus was nearing a deal for the Kraft brands, citing unidentified people.
Kraft Heinz had been seeking about $1 billion for the assets, people with knowledge of the matter said in August. Some potential bidders had balked at the valuation, due to what they saw as lower growth prospects for certain products amid changing consumer tastes in India, according to the people.
--With assistance from Vinicy Chan and Lisa Wolfson.
To contact the reporters on this story: George Smith Alexander in Mumbai at galexander11@bloomberg.net;P R Sanjai in Mumbai at psanjai@bloomberg.net;Ruth David in London at rdavid9@bloomberg.net
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;K. Oanh Ha at oha3@bloomberg.net, ;Daniel Hauck at dhauck1@bloomberg.net, Amy Thomson, Matthew Monks
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