Danone completes takeover of Wockhardt’s nutrition business

French dairy firm Danone has completed the acquisition of Wockhardt’s nutrition business for Rs12.80bn ($228m), a deal that marks the dairy company’s entry into India’s baby foods and medical nutrition market.

With the deal, Danone has acquired infant food brands such as Farex, Dexolac and Nusobee, as well as adult food supplement Protinex, and the related manufacturing operations from Carol Info Services, a subsidiary of India-based pharmaceutical and biotech firm Wockhardt.

Farex and Dexolac together hold a 7% share in the baby nutrition market in India, while Swiss food firm Nestle holds a 90% share with brands like Cerelac and Nan.

Danone now plans to launch products from its international range in India.

The newly acquired business, based in Mumbai, India, is called Nutricia International, which has two divisions – the baby nutrition business is known as Nutricia Baby Nutrition & Shared Organization, while the medical nutrition business is called Nutricia Medical Nutrition.

Laurent Marcel and Anver Moola have been appointed as managing directors of Nutricia Baby Nutrition & Shared Organization and Nutricia Medical Nutrition respectively.

Marcel said the company plans to make a major contribution to the Indian food and specialised nutrition industry.

"Danone will utilise its global expertise in R&D and innovation to further enhance the established brands and develop products to serve India’s rising nutrition needs," Marcel added.

Although the deal was finalised in August 2011, the acquisition was delayed after Wockhardt was involved in litigation with overseas bondholders, who demanded its liquidation to recover their arrears.

Wockhardt had previously agreed to sell its nutrition business to Abbott for Rs6bn ($107.50m) in 2009.

The deal, however, was cancelled after investors owning 40% of Wockhardt’s foreign currency convertible bonds fought against the proposal in Bombay High Court, which halted the sale of the business.

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Image: With the acqusition of Wockhardt’s nutirition business, Danone gains control of brands such as Farex, Nusobee and Protinex in India. Photo: Wockhardt.