Zydus Wellness To Acquire Naturell India, Enter Healthy Snacking Market
The transaction is expected to be earnings-per-share accretive for Zydus Wellness from the very next year post-acquisition.
Zydus Wellness Ltd. will acquire a 100% stake in Naturell (India) Pvt., including wholly owned subsidiary, for Rs 390 crore in a strategic leap into healthy consumer snacking space.
In a meeting, Zydus Wellness' board of directors have approved a proposal to enter into the share purchase agreement with the promoters and other shareholders of Naturell India, according to an exchange filing on Wednesday.
Zydus Wellness will acquire 1.51 crore equity shares of Re 1 each, representing 100% of the paid-up share capital of the target.
Naturell India commercially started its operations in 2003 and ventured into healthy snacks in 2007. It is engaged in the business of manufacturing, research and development, and marketing of nutrition bars, protein cookies, protein chips and health food products.
The acquisition seamlessly aligns with Zydus Wellness' strategic vision, expanding its footprint in the consumer wellness industry by foraying into the rapidly growing healthy snacking segment. It strengthens its market presence and commitment to address the evolving needs and preferences of health-conscious consumers.
"This acquisition represents a strategic addition to Zydus Wellness, perfectly aligning with our aspirations to expand within the consumer wellness space," Sharvil Patel, chairperson of Zydus Wellness, said.
The transaction is proposed to be funded by cash. It is expected to be earnings-per-share accretive for Zydus Wellness from the very next year post-acquisition.
Shares of Zydus Wellness closed 2.03% higher at Rs 1,884.25 apiece on the NSE, compared to a 0.51% decline in the benchmark Nifty 50. The stock has risen 22.27% in the last 12 months and 12.08% on a year-to-date basis.
Three out of the five analysts tracking the company have a 'buy' rating on the stock and two recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 33.8%.
