Sanofi India Ltd. would sell and transfer its nutraceuticals business to Universal Nutriscience Pvt. for Rs 587 crore.
The company's board at its July 27 meeting has approved a slump sale, on a going concern basis, of the nutraceuticals business, according to an exchange filing. It comprises 16 brands including cod liver oil supplements such as Seacod and E-Cod; Primosa (for treatment of acne), and Collaflex (for joint pains); and 30 stock-keeping units.
The total consideration for the deal includes debt obligations such as retirals and provision for sales returns, subject to customary working capital and post-closing adjustments.
Besides, all business assets and liabilities including contracts, intellectual property rights, inventory, and all employees associated with this will be transferred to Universal Nutriscience — a strategic partnership between private equity firm Kedaara Capital and Universal Medicare.
The transaction, the filing said, in expected to complete in the next three months.
“The company believes that the future potential of the nutraceuticals range would be maximised in an organisation, which can provide deep category understanding and continuous innovation required to win in this specialised area,” Rajaram Narayanan, managing director at Sanofi India, was quoted as saying in the filing.
The nutraceuticals business, according to the filing, has contributed Rs 128.2 crore (5%) to Sanofi's revenue, and Rs 106.4 crore (5%) to its net worth in the financial year ended December 2020.
Shares of Sanofi India were trading 2.48% higher around noon on Wednesday compared with a 0.96% decline in the Nifty 50.
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