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Zydus Cadila entity to sell its India focused animal health business for $408 million

Christian Fernsby |
Cadila Healthcare has said its wholly-owned subsidiary Zydus Animal Health and Investment has entered into an agreement to sell its Animal Healthcare Established Markets Undertaking (Zydus AH) to Multiples Alternate Asset Management-led consortium for nearly Rs 3,000 crore ($408 million).

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Topics: INDIA   

Zydus AH is the animal health business of ZAHL focused on India and certain other countries.

The consortium, including Canada Pension Plan Investment Board (“CPP Investments”) and RARE Enterprises (“RARE”), has agreed to purchase the Undertaking through an SPV controlled by them, in the name of Zenex Animal Health India Private Limited.

Zydus AH is the second largest and one of the fastest growing animal health businesses in India. The business enjoys leadership position across a wide spectrum of therapeutic and nutritional products for livestock and poultry animal segments. It employs approximately 700 people and has one manufacturing facility in Haridwar.

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.

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. Zydus continues to develop the animal health business products for those markets and at present, this business is in the development and investment phase.

Multiples, along with its consortium partners, will acquire 100% business of Zydus AH through a slump sale transaction. 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.

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