Zydus Wellness is acquiring Heinz India pvt. ltd. Interesting move but don’t think its a great one because the acquisition doesn’t include heinz’s ketchup and mayo business but includes Complan, Glucon-D, Nycil and Sampriti. Last year revenues are at Rs.1130 Cr. and EBITDA of 225 Cr. and Zydus is paying 4595 Cr for this - Roughly 4x Sales and 20x EBITDA. It’s probably not an exorbitant valuation but from what I have read and followed, Malt based energy drinks are on a decline which is why GSK put horlicks on the block earlier this year. Zydus may have got this business for cheap considering GSK was expecting $4 billion for Horlicks (may just be price anchoring) which was roughly 8x Sales for Horlicks.
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