Zydus Life To Acquire 50% Stake In Sterling Biotech For Rs 550 Crore
NovaaOne Capital is the exclusive financial advisor to Perfect Day for this transaction.
Zydus Lifesciences Ltd. will acquire 50% stake in Sterling Biotech Ltd. from Temasek-backed Perfect Day Inc to enter into fermentation-based protein business. The drugmaker will shell out Rs 550 crore for the acquisition.
The board approved the share purchase and share subscription agreement between Zydus subsidiary Zydus Animal Health and Investments Ltd and Perfect Day on Friday.
Post the deal, Sterling Biotech will become a joint venture with equal representation on the board, the company said. The transaction is expected to be completed in two months.
Sterling Biotech is one of the leading producers of Pharmaceutical Gelatine, Dicalcium Phosphate and some APIs, and operates two manufacturing facilities in Gujarat. It reported a turnover of Rs 454 crore in the financial year 2023-24.
NovaaOne Capital Pvt. is the exclusive financial advisor to Perfect Day for this transaction.
The JV will establish a state-of-the-art manufacturing facility to manufacture fermented animal free protein to cater to the global markets and growing consumer demand for fermentation-based and ethically sourced nutrition, Zydus Life said in a statement.
The acquisition will also mark Zydus' foray into specialised biotech products for health and nutrition, specifically catering to consumers who prefer animal-free protein or suffer from lactose intolerance. Perfect Day’s precision-fermented protein is found in ice creams, cream cheese, sports nutrition products, and baked goods with high functionality benefits and lower environmental impact, the statement said.
The partnership with Zydus will allow Perfect Day to significantly boost its capabilities to meet the demands of the fast-growing global market, interim CEO Narayan TM said.
Founded in 2014, Perfect Day precision-fermented protein products are marketed across the US, Hong Kong, and Singapore.
