Kraft Heinz to sell stake in Heinz India business for $625m

The Kraft Heinz Company has signed an agreement to sell 100% of its equity shares in Heinz India to Zydus Wellness and Cadila Healthcare, in a deal valued at about INR46bn ($625m).

Heinz India consists of Complan, Glucon-D, Nycil and Sampriti brands, in addition to two manufacturing facilities. About 900 employees are associated with these brands and operations.

Kraft Heinz CEO Bernardo Hees said: “The sale of this niche business fits into our overall global growth strategy and our focus on investing in and growing brands within our core categories.

“India continues to be a key market for Kraft Heinz, and in fact, we’re strengthening our commitment to expand and grow our Heinz sauces and Kraft business in India.”

Heinz India generates about $150m in net sales and about $30m in adjusted EBITDA.

J.P. Morgan Securities served as financial advisor to Kraft Heinz. Indian firm Cyril Amarchand Mangaldas and global law firm Gibson, Dunn & Crutcher served as legal advisors.

Kraft Heinz added that the sale of its Indian business will not have a material impact on its annual financial results.

Subject to regulatory approvals and other customary closing conditions, the deal is expected to be completed early next year.

Kraft Heinz’s brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Smart Ones and Velveeta.