New Delhi, Sept. 1 -- Zydus Wellness has announced its first overseas acquisition by agreeing to take over UK-based vitamins and supplements company Comfort Click Ltd, which will mark its entry into the British and European markets.
The Mumbai-listed consumer wellness arm of pharmaceutical major Zydus LifeSciences has agreed to acquire the British nutraceutical firm and its three subsidiaries in Ireland, the US, and India via its wholly-owned subsidiary Alidac UK Ltd, according to a stock exchange filing.
The deal will involve Alidac fully acquiring Comfort Click for an equity value of £239 million ($323 million, or Rs 2,852 crore) in cash, along with an agreed profit adjustment from the lock-box date of the transaction.
Ahmedabad-based Zydus Wellness said Comfort Click's existing management will continue to helm operations and reinvest part of the sale proceeds into growth shares linked to performance. The deal is expected to be accretive to cash EPS.
This marks Zydus Wellness' first overseas acquisition and its foray into the vitamins, minerals and supplements (VMS) segment.
"With Comfort Click, we are strengthening our global capabilities, deepening our presence in digital health and personalized wellness, and exploring scalable and sustainable models that will shape the future of well-being," Zydus Wellness' chairman Sharvil Patel said in a statement.
The global digital VMS market is projected to grow at a compound annual growth rate (CAGR) of 7-9%, reaching $50-60 billion by the end of the decade, driven by growing demand for preventive healthcare, e-commerce expansion and digital health platforms.
Zydus said the acquisition aligns with its strategic goal of expanding its international footprint while deepening capabilities in consumer-centric health and well-being solutions.
Founded in 2005, Comfort Click is a digital consumer platform in the VMS segment, with operations across the UK and Europe. The company is also expanding its operations in the US. Its product portfolio covers adults, children and pets.
It has three brands: WeightWorld for adult nutrition, Maxmedix gummy brand for children's nutritional needs, and Animigo for pet care products. Comfort Click derives the majority of its revenue from e-commerce and direct-to-consumer (D2C) sales in the UK and Europe.
Comfort Click has grown at a 57% CAGR over the past five years through the launch of various products, according to an investor presentation.
As per the provisional figures, revenue from operations rose 57% to £134 million in the financial year ended June, against £85 million in FY24 and £52 million in the preceding year. It reported EBITDA of £21 million in the last financial year.
Published by HT Digital Content Services with permission from VC Circle.