True North backs Zydus' acquisition of Heinz India

The private equity firm is part of a consortium that includes Pioneer Investment Fund and existing shareholders Cadila Healthcare and Zydus Family Trust. The investors will buy 18.6 million newly issued shares at INR1,382 apiece, for a total commitment of INR25.7 billion, according to a regulatory filing. True North’s investment will give it a 12.5% holding in the company.

Zydus announced in October that it would acquire the Heinz India business from US-headquartered Kraft Heinz at a valuation of INR46 billion, giving it control of several brands managed by the company including energy drinks Complan and Glucon-D, talcum powder Nycil, and Sampriti, a maker of ghee. The deal also includes control of two manufacturing facilities.

Kraft Heinz said the sale would allow it to focus on its core business of sauces and packaged foods in India. Heinz India generated about $150 million in net sales and $30 million in adjusted EBITDA for the most recent financial year, but the parent said in its annual report that sales of nutritional beverages in India had been declining.

Zydus manufactures a range of nutritional and personal care products aimed at Indian consumers. For the year ended March 2018, the company reported revenue of INR2.9 billion, up from INR2.5 billion the prior year. Over the same period, net profit grew from INR108 million to INR134 million.

True North, formerly known as India Value Fund Advisors, is currently raising its sixth fund, which launched last year with a hard cap of $1.1 billion, although this was subsequently reduced to $990 million. Recent personal care and wellness investments include the acquisition of a controlling stake in hair and beauty care products maker Sesa Oil and the purchase of the orthopedics and pain management business of Glenmark Pharmaceuticals.

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• Topics
• South Asia
• Healthcare
• Consumer
• PIPEs
• India
• True North
• Growth capital