Pharmaceutical and biotechnology major Wockhardt will sell its nutrition business to global healthcare company Abbott. While Wockhardt did not disclose the financial details, a Chicago Tribune report said the deal was for $130 million (Rs 625 crore) in cash.
Mr Holger Liepmann, Executive Vice-President of Abbott’s global nutrition business, was quoted saying, “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.”
A statement from Abbott said it would acquire the nutrition businesses of Wockhardt, Carol Info Services and certain Wockhardt subsidiaries. As India’s leading local manufacturer of paediatric nutritional products, Wockhardt has several leading paediatric and adult nutritional brands, such as Farex and Protinex.
Brand equity
In a communiqué to the BSE, the Wockhardt Chairman, Mr Habil Khorakiwala, 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- focussed company as Abbott to be able to leverage its full potential in the global markets. We have captured fair value for this divestment and Wockhardt will continue to grow and show robust results in the future.”
Saddled with Rs 3,400-crore debt, Wockhardt had gone in for corporate debt restructuring. In April, Mr Khorakiwala told Business Line that it would exit its non-core businesses though the recast did not require it.
Source: The Hindu Businessline