Zydus Lifesciences said it has entered into an agreement with Temasek-backed Perfect Day to acquire a 50 percent stake in Sterling Biotech.
Post the transaction, Sterling Biotech will become a 50:50 joint venture (JV) with equal representation on the Board, Zydus Lifesciences said in a statement.
As part of the deal, Zydus Animal Health and Investments Ltd, a wholly owned subsidiary of Zydus will acquire 322 crore equity shares of Rs 1 each fully paid-up of the Sterling Biotech, representing 50% of the paid-up share capital.
Sterling has revenue from operations of Rs 455 crore in FY24.
The JV will establish a state-of-the-art manufacturing facility to manufacture fermented animal free protein to cater to the global markets.
The acquisition will mark Zydus’ foray into specialised biotech products for health and nutrition, specifically catering to consumers who prefer animal-free protein or suffer from lactose intolerance.
Sunil Sanghai, founder and CEO of NovaaOne Capital Private has acted as an exclusive financial advisor to Perfect Day for this transaction.
Perfect Day’s precision-fermented protein is found in ice creams, cream cheese, sports nutrition products, and baked goods with high functionality benefits and lower environmental impact.
The JV will accelerate the production of high-quality and eco-friendly protein products, reduce environmental impact, and cater to the growing consumer demand for fermentation-based and ethically sourced nutrition.
Sterling Biotech is into fermentation-based active pharmaceutical ingredients (API) products and gelatine. It operates two manufacturing facilities in Gujarat. Following the acquisition of Perfect Day in November 2022 through Insolvency and Bankruptcy (IBC) proceedings, Sterling is focussing on animal free protein products.
Zydus said the JV will also focus on animal free protein products and will take a strategic view on API and gelatine business.
“We are dedicated to promoting growth through partnerships and are consistently exploring new collaborations to position India as a premier global supply chain hub,” said Dr. Sharvil Patel, managing director, Zydus.
“We are excited to join forces with Perfect Day and create a win-win combination that leverages both our strengths and expertise to create value for the consumers,” Patel added.
