Zydus Wellness acquires Naturell (India), makers of Ritebite, for Rs 390 crore

New Delhi: Zydus Wellness said its board has approved the acquisition of Naturell (India), a maker of healthy snacks such as nutrition bars and protein chips, for Rs 390 crore.

The company's board has approved entering into the share purchase agreement with the promoters and other shareholders of Naturell (India) to acquire 1,50,78,605 equity shares of Re 1 each, representing 100% of the paid-up share capital, at a consideration of Rs 390 crore, it said in a regulatory filing.

"We believe that this acquisition is an opportunity to expand our portfolio by investing in brands and products that resonate with our company's portfolio and today's health-conscious consumers," Zydus Wellness Chairman Sharvil Patel said.

He added that the acquisition represents a strategic addition to Zydus Wellness, perfectly aligning with the company's aspirations to expand within the consumer wellness space.

Vijay Uttarwar, founder of Naturell (India), said Zydus has a proven track record of entering niche and emerging segments early and successfully transforming them into major brands.

"We are confident that with access to the wide distribution network, strong supply chain and marketing capability, our product portfolio will be able to scale newer heights," he added.

Naturell (India)'s business portfolio includes brands such as Ritebite Max Protein and Ritebite (fiber-enriched snacks). It commercially started its operations in 2003 and ventured into healthy snacks in 2007.

The transaction is proposed to be funded by cash and is expected to be EPS accretive for Zydus Wellness from the very next year post-acquisition, the company said.