A consortium of investors led by homegrown private equity firm Multiples Alternate Asset Management has entered into a definitive agreement to acquire the animal healthcare business of Cadila Healthcare, the pharma major has told stock exchanges. The buyout has been struck through a slump sale for Rs 2,921 crore.
The consortium includes Canada Pension Plan Investment Board (CPPIB) and Rare Enterprises, which is backed by ace investor Rakesh Jhunjhunwala.
Moneycontrol was the first to write on March 8, 2021 that a Multiples-backed consortium had emerged as the front-runner for the proposed sale.
Cadila Healthcare, also known as Zydus Cadila, proceeded with the divestment to accelerate the growth of the business, improve operational efficiencies and explore strategic choices for the animal health vertical. Through the transaction, Zydus Animal Health and Investment Ltd (ZAHL) has divested the established market portion of its business.
ZAHL provides total healthcare solutions ranging from formulations, active pharmaceutical ingredients, wellness products, diagnostics for animal healthcare products.
“We would like to inform that Zydus Animal Health and Investment Limited, a wholly-owned material subsidiary of Cadila Healthcare Limited has entered into a Business Transfer Agreement and other Ancillary Agreements for disposal of its Animal Healthcare Established Markets Undertaking (having animal healthcare business in India and certain other countries) to Zenex Animal Health India Private Limited (formerly known as Nutrizvit Animal Health India Private Limited) by way of a slump sale,” the disclosure said.
Zenex Animal Health India Private Limited is a special purpose vehicle incorporated by Multiples Alternate Asset Management Private Limited and other investors to carry on animal healthcare business, it added.
“For the information of the investors, ZAHL has another business undertaking viz. Animal Healthcare Emerging Markets 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. ZAHL continues to develop the animal health business products for those markets and at present, this business is in the development and investment phase,” the announcement said.
In the pharma and healthcare segment, Multiples PE is invested in firms like Natco Pharma, Encube Ethicals (a contract development and manufacturing organisation for dermatology products) and Bengaluru-based Vikram Hospitals. It also backs Delhivery, Dream11, Arvind Fashions, Livpure, PVR Cinemas and RBL Bank. It has more than $1.5 billion in management.
Founded in 2009, it is headed by CEO and founder Renuka Ramnath, the former boss of ICICI Ventures, the venture capital arm of the ICICI Group.
CPPIB is headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney.