Zydus Cadila to sell animal health business to an asset management-led consortium

Cadila Healthcare Ltd, a global pharmaceutical company, announced today that its wholly-owned subsidiary, Zydus Animal Health & Investments Limited (ZAHL) has entered into a business transfer agreement (BTA) to sell & transfer its animal healthcare established markets undertaking (Zydus AH) to a consortium, which is led by Multiples Alternate Asset Management.   

ZAHL-owned Zydus AH is focussed on India and some other countries. It is the second-largest and one of the fastest-growing animal health businesses in India. It offers a wide spectrum of therapeutic and nutritional products for livestock & poultry animal segments.  

The consortium has agreed to purchase Zydus AH via Zenex Animal Health India Pvt Ltd, which is a special purpose vehicle (SPV) controlled by it. Canada Pension Plan Investment Board (CPP Investments) and Rare Enterprises are a part of this consortium.   

As per the terms of the agreement, Zydus AH will be sold for a lump sum consideration of Rs 2,921 crore on a cash-free and debt-free basis, subject to certain closing date adjustments and other conditions.  

At 1.49 pm, the share price of Cadila Healthcare Ltd was trading at Rs 653.45, which was an increase of 3.77 per cent over the previous day’s closing price of Rs 629.70 on BSE.