Wockhardt, a Rs 3,500 crore Mumbai based debt ridden pharma major, has divested its Nutritional businesses to Abbott, the global health care company, for a total consideration of Rs 630 crore (US$130 million) in cash. These transactions also include nutrition manufacturing facilities located in Lalru and Jagraon, India, Carol Info Services Ltd, and certain Wockhardt subsidiaries and group companies.
These transactions are subject to customary closing conditions and various approvals. Wockhardt and Abbott expect the transactions to close in the second half of 2009. The transactions are not being conducted by Abbott's publicly traded subsidiary, Abbott India, Ltd.
Wockhardt has a significant presence in India's paediatric nutritional category with Farex, Dexolac and Nusobee infant formulas and Farex weaning cereal. The adult protein supplement, Protinex is the segment leader and recently won the coveted 'Most Trusted Brand' award for 2009 in the vitamin and health supplement category.
Abbott will get manufacturing and commercial infrastructure in key emerging market for nutrition products through this acquisition. These products hold the number two position in India's paediatric nutrition category with Farex, Dexolac and Nusobee infant formulas and Farex weaning cereal. The adult protein supplement, Protinex, is the segment leader.
Commenting on this divestment, Habil Khorakiwala, chairman, said, "At Wockhardt we invested and nurtured to build valuable brand equity for these heritage brands and it was time now for a specialised nutrition-focused company as Abbott to be able to leverage its full potential in the global markets." He further added, "We have captured fair value for this divestment and Wockhardt will continue to grow and show robust results in the coming future."
Holger Liepmann, executive vice president, global nutrition, Abbott, said, "This acquisition is an excellent strategic fit for Abbott to accelerate growth of its nutrition business in India, where the nutritional market is expected to experience strong growth in the coming years. Combining these trusted nutrition products, local manufacturing capability and commercial infrastructure with Abbott's existing paediatric and adult nutrition offerings positions Abbott very well to serve Indian consumers."
The acquisition includes approximately 600 employees in total. Abbott has approximately 1,500 employees in India across all of its businesses and has been operating in India since 1910. Abbott offers Isomil, PediaSure , Ensure and Glucerna in India and plans to introduce additional products from its broad-based nutritional portfolio to Indian consumers in the coming years. Abbott's international nutrition business is an important growth driver for the company and has had particularly strong growth in China, Southeast Asia and Latin America in recent years.