Kedaara-backed firm to buy Sanofi India’s nutraceuticals business

 Kedaara-backed firm to buy Sanofi India’s nutraceuticals business

Universal Nutriscience Pvt. Ltd, a company backed by Indian private equity firm Kedaara Capital, will buy the nutraceuticals business of Sanofi India Ltd for Rs 587 crore ($79 million).

Sanofi India will transfer 16 nutraceutical brands in its portfolio to Universal Nutriscience as part of the transaction. These include brands such as Seacod, E-Cod, Primosa, and Collaflex. All employees involved in this business will also move to Universal Nutriscience, Sanofi India said in a statement.

The sale is part of Sanofi India’s growth strategy to develop new business models, leverage technologies and simplify its portfolio.

“Following a strategic review of its portfolio, the company believes that the future potential of the nutraceuticals range would be maximized in an organisation, which can provide deep category understanding and continuous innovation required to win in this specialized area,” said Rajaram Narayanan, managing director at Sanofi India.

Nishant Sharma, CIO and managing partner at Kedaara Capital, said Universal Nutriscience aims to to become India’s leading nutraceuticals company.

Universal Nutriscience is a partnership between Kedaara and nutraceuticals maker Universal Medicare Pvt. Ltd.

Sanofi said the deal value includes debt-like obligations such as retirals and provision for sales returns, subject to customary working capital and post-closing adjustments. The deal is likely to close within three months.

The nutraceuticals business contributed Rs 128.2 crore, or 5%, to Sanofi India’s revenue for the year through December 2020.

Deloitte Corporate Finance acted as the exclusive financial advisor to Sanofi India on this transaction.

Sumit Upadhyaya

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