Global Economy

Multiples, CPPIB and Jhunjhunwala’s RARE to buy Cadila’s Animal Health biz for Rs 2921 crores

A consortium of financial investors including Rakesh Jhunjhunwala’s RARE Enterprises, Multiples Alternate Asset Management and Canada Pension Plan Investment Board (CPPPIB) have agreed to acquire the animal health business of Zydus Cadila Group for around Rs 2921 crores.

The consortium, through an SPV controlled by them, has signed a definitive agreement to acquire Animal Healthcare Established Markets Undertaking focused on India and certain other countries, the company said in a statement.

ET first reported about the potential transaction on Feb 1.

“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,” the statement said.

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.

“Zydus AH is a strong leader in the Indian animal health market with strong brands, comprehensive product portfolio and extensive distribution network,” said Renuka Ramnath, Founder and CEO, Multiples Alternate Asset Management.

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 a period of 90 days.

“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,” said Rakesh Jhunjhunwala, Partner, RARE Enterprises.

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“Over the last 3 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,” said Pankaj Patel, Chairman,


For Multiples, J Sagar and Associates acted as the Legal Advisors and PWC acted as financial and tax advisors.


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