Mumbai: Drug maker Wockhardt Ltd. on Tuesday said in a statement that it had sold its nutrition business to US-based drug maker Abbott Laboratories Inc. for an undisclosed amount. The business comprises two key brands—Farex, a baby food, and Protinex, a health supplement. The business unit was expanded three years ago through the acquisition of Dumex India Pvt. Ltd from Royal Numico NV of the Netherlands.
The company did not reveal whether the deal includes its manufacturing plant in Punjab.
This is the third sale of assets that the company has announced this year. In February, it sold its German pharmaceuticals business Esparma GmbH to Mova GmbH., and in June sold its animal health business to French firm Vitoquinol SA.
Wockhardt had earlier said it would sell its non-core assets to repay Rs1,400 crore in debt due by December, including $110 million (around Rs530 crore) in foreign currency bonds, a loan through external commercial borrowing and other loans from local banks. Wockhardt has also been granted a corporate debt restructuring (CDR) scheme by its domestic lenders.
“At Wockhardt, we invested and nurtured to build a valuable brand equity for these heritage brands, and it was now time for a specialized nutrition-focused company as Abbott to be able to leverage its full potential in the global markets,” Wockhardt chairman Habil Khorakiwala said in a statement.
The company said the transactions are subject to customary closing conditions and various approvals, and that it expects the transactions to be completed later this year.