Kraft Heinz has agreed to sell a range of its Indian brands, including children’s milk drink Complan, to Zydus Wellness for around INR 46 billion ($628 million).
Under the terms of the agreement, Kraft Heinz will sell to Zydus Wellness (jointly with Cadila Healthcare), 100% of its shares in Heinz India and two manufacturing facilities, with approximately 900 employees.
Other brands included in the deal are Sampriti clarified butter, Glucon-D energy drinks and Nycil talcum powder.
The business generates approximately $150 million in annual net sales and around $30 million in adjusted EBITDA. Kraft Heinz said the sale is not expected to have a material impact on its annual financial results.
Kraft Heinz CEO Bernardo Hees said: “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.
“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.”
In its most recent quarterly results, Kraft Heinz saw its net sales rise by 0.7% thanks to a growth in emerging markets.
In the US, which accounts for two-thirds of the company’s business, net sales shrank by 1.9% to $4.51 billion. Sales in Canada were also down.
However, in its Europe, Middle East and Africa unit and rest of the world division, revenues rose by 8.7% and 13.5% respectively, driven by growth in condiments and sauces.
© FoodBev Media Ltd 2020
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