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Sterling Biotech, a major pharmaceutical company with two manufacturing facilities in Gujarat, specializes in Gelatine, Di-Calcium Phosphate and select APIs. Once the deal concludes, Sterling Biotech will transition into a 50:50 joint venture, ensuring equal representation for both parties on the board.
Zydus Lifesciences Limited has signed an agreement with Perfect Day Inc, a Temasek portfolio company, to buy its 50% stake in Sterling Biotech Limited in a Rs 550 crore deal.
Sterling Biotech is one of the leading producers of pharmaceutical Gelatine, Di-Calcium Phosphate and some APIs with two manufacturing facilities in Gujarat.
After the completion of the deal, Sterling Biotech will become a 50:50 joint venture with equal representation on the board.
NovaaOne Capital Private Limited is acting as an exclusive financial advisor to Perfect Day for this transaction.
“The JV will establish a state-of-the-art manufacturing facility to manufacture fermented animal-free protein to cater to the global markets. 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,” Zydus said in a regulatory filing.
The acquisition will also 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. 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.
With a clear vision of focussing on animal-free protein products, the JV partners will also take a strategic view on API and gelatine business, Zydus said.
“We are dedicated to promoting growth through partnerships and are consistently exploring new collaborations to position India as a premier global supply chain hub. 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 consumer,” said Zydus Lifesciences MD Sharvil Patel.
In FY24, Sterling Biotech reported a turnover of Rs 454.9 crore.
The acquisition is expected to be completed within 60 working days from the date of execution of the share purchase agreement.
