Multiples to buy out Zydus Cadila’s India focussed animal health business

The deal is valued at $400 million

Multiples Alternate Asset Management (Multiples) led consortium, through an SPV controlled by them, have signed a Business Transfer Agreement (BTA) and other Ancillary Agreements (Definitive Agreements) to acquire Animal Healthcare Established Markets Undertaking (Undertaking or Zydus AH). The consortium including Multiples, Canada Pension Plan Investment Board (CPP Investments) and RARE Enterprises (RARE), is buying the animal health business of Zydus AH focussed on India and certain other countries on a going concern basis via a slump sale from Zydus Animal Health and Investments (ZAHL), a wholly-owned subsidiary of Cadila Healthcare (Cadila).


The lump-sum consideration for the transaction is fixed at Rs 2921 crores on a cash-free and debt-free basis, subject to certain closing date adjustments and other conditions. Zydus AH is the second-largest and one of the fastest-growing animal health businesses in India. The business enjoys a 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.

Commenting on the transaction Renuka Ramnath, Founder and CEO, Multiples Alternate Asset Management shared, “Zydus AH is a strong leader in the Indian animal health market with strong brands, comprehensive product portfolio and extensive distribution network. We are excited to back Zydus AH’s top-quality management team led by Dr Arun Atrey and be able to invest in a business that has been helping farmers enhance their productivity and incomes by delivering innovative animal health solutions”.

“I expect Multiples to do many such large transactions in the coming years. We are also delighted to partner with CPP Investments and RARE enterprises for our first consortium deal. We look forward to working with them and, help the company unlock its full potential and create value for all stakeholders,” Ramnath added.

Rakesh Jhunjhunwala, Partner, RARE Enterprises said, ” We are delighted to partner with CPP Investments and Multiples in investing into a market-leading business, in a segment which has huge growth potential and has a top-quality management team.”

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 90 days.

Pankaj Patel, Chairman, Cadila Healthcare, said, “Over the last three decades Zydus AH has grown to become a pioneer and market leader in the Indian animal health industry. With multiples and its consortium partners, committed to growing the business, we are sure that Zydus AH will continue to grow and strengthen its position in the industry.”

Dr Arun Atrey, MD, ZAHL, said, “The Zydus AH business has a very strong franchise in the market and is extremely well-positioned to take advantage of the continued industry growth in India and select exports markets. We expect this process to be seamless for our customers, suppliers and other stakeholders with no disruption to our operations.”

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