JK Paper will acquire a majority stake in Quadragen Vethealth Private Ltd (QVPL) in a deal aimed at expanding into the animal nutrition sector, the company said on January 30.
JK Paper will buy 65 percent of QVPL upfront under a share purchase and shareholders' agreement (SPSHA) and the remaining 35 percent will be acquired over four years.
QVPL manufactures and exports feed additives and growth promoters.
“The acquisition aligns with JK Paper’s strategy to enter a high-growth, export-oriented industry,” JK Paper chairman and managing director Harsh Pati Singhania said.
Mumbai-headquartered investment bank Singh Advisors exclusively advised on the transaction.
Incorporated in 2010, QVPL manufactures animal health and nutrition products, which it markets in more than 22 countries.
Its product portfolio consists of feed ingredients, feed additives, vitamins, mineral premixes, and amino acids. QVPL caters to three segments — poultry and swine, pets, and dairy.
In 2022, it acquired a 50 percent stake in Karnataka Nutraceutical India Ltd, which is in a similar line of business.
JK Paper is India’s leading producer of branded copier paper and a key manufacturer of coated paper and packaging products.
The company focuses on value-added products such as security paper, virgin fibre packaging boards, food-grade papers, corrugated boxes, mono cartons, and labels. It is a wood and carbon-positive enterprise.
The company reported a 72 percent year-on-year (YoY) decline in net profit which plunged to Rs 65 crore in the December quarter. It reported a consolidated turnover of Rs 1,732.97 crore and EBITDA of Rs 189.77 crore. For the nine-month period, consolidated turnover stood at Rs 5,314.92 crore, EBITDA at Rs 794.65 crore.
The company has over the years begun several farm forestry initiatives to ensure raw material availability and improve green cover across Odisha, Gujarat, Andhra Pradesh, Telangana, and Maharashtra, the company said.
At 12.27 pm, the JK Paper stock was trading at Rs 358.50 on the National Stock Exchange, down 6.05 percent from the previous close, following the company’s lacklustre performance in the December quarter.
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