BREAKING NEWS

Kraft Heinz to sell stake in Heinz India business for US$625m

The Kraft Heinz Company announced today that it has entered into a definitive agreement to sell Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Cadila at a valuation of approximately INR 46 billion (approximately USD$625 million) on a debt free and cash free basis. The transaction is expected to close in early 2019, subject to regulatory approvals of the Competition Commission of India and other customary closing conditions.

“The sale of this niche business fits into our overall global growth strategy and our focus on investing in and growing brands within our core categories,” said Bernardo Hees, Chief Executive Officer of Kraft Heinz. “India continues to be a key market for Kraft Heinz, and in fact, we’re strengthening our commitment to expand and grow our Heinz sauces and Kraft business in India.”

At current FX rates, this business generates approximately USD$150 million (INR 11.50 billion) in Net Sales and approximately USD$30 million (INR 2.25 billion) in Adjusted EBITDA. The sale is not expected to have a material impact on Kraft Heinz’s annual financial results.

Under the terms of the agreement, Kraft Heinz will sell to Zydus Wellness Limited (jointly with Cadila Healthcare Limited), 100% of its equity shares in Heinz India Private Limited, which is comprised of Complan, Glucon-D, Nycil and Sampriti brands, and two manufacturing facilities, with approximately 900 employees associated with these brands and operations.

J.P. Morgan Securities LLC served as exclusive financial advisor to Kraft Heinz for this transaction, while India-based Cyril Amarchand Mangaldas and global law firm Gibson, Dunn & Crutcher served as legal advisors for Kraft Heinz.

About Kraft Heinz
The Kraft Heinz Company (NASDAQ: KHC) is the fifth-largest food and beverage company in the world. A globally trusted producer of delicious foods, The Kraft Heinz Company provides high quality, great taste and nutrition for all eating occasions whether at home, in restaurants, or on the go. The Company’s iconic brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Smart Ones and Velveeta. The Kraft Heinz Company is dedicated to the sustainable health of our people, our planet and our Company. 

About Zydus Wellness Ltd.
Zydus Wellness Ltd. (ZWL) is the listed entity of the Zydus group and is one of the leading companies in the fast growing Indian consumer health market. The company has grown over the years on the back of pioneering brands like Sugar Free, EverYuth and Nutralite and innovations offering new benefits to consumers. Sugar Free, the flagship brand of Zydus Wellness, launched in 1988, is a sugar substitute that leads the market with dominant market share. ‘Sugar Free’, the largest selling sweetener brand in the country with over 93% market share, has now become more of a lifestyle brand rather than just a sugar substitute for diabetics. The skincare range of products sold under the umbrella brand ‘EverYuth’ has been able to retain its leadership position despite increasing competition and an influx of international brands. ‘Nutralite’, India’s largest selling table spread has gained widespread consumer acceptance as a healthier substitute to butter.

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