In a significant strategic move, JK Paper Limited has announced its acquisition of a majority stake in Quadragen VetHealth Private Limited (QVPL), a Bengaluru-based company specializing in animal nutrition products, including feed additives and growth promoters. The decision was approved by the Board of Directors at a meeting held on Wednesday, 29th January 2025.
Under the terms of the agreement, JK Paper will acquire 65% of QVPL’s paid-up share capital, with the remaining 35% to be acquired over the next four years based on the company’s performance. The acquisition is valued at Rs. 769.23 per equity share of Rs. 10 each, subject to adjustments as per the Share Purchase and Shareholders’ Agreement (SPSHA).
Strategic Expansion into Animal Nutrition
QVPL operates in the rapidly growing animal health and nutrition sector, manufacturing, marketing, and exporting its products across India and various international markets. This acquisition allows JK Paper to diversify its business portfolio by entering a promising and expanding industry segment.
Commenting on the acquisition, JK Paper Limited stated, “This strategic move enhances our growth opportunities in the specialty chemical and animal health sector. QVPL’s established presence and strong market positioning align well with our long-term vision.”
Key Details of the Acquisition
- Company Overview: QVPL was incorporated on 15th September 2010 and is engaged in the production and export of animal nutrition products.
- Financial Performance: QVPL reported a turnover of Rs. 151.96 crore in FY 2023-24, Rs. 141.88 crore in FY 2022-23, and Rs. 103.19 crore in FY 2021-22.
- Acquisition Timeline: The acquisition of the initial 65% stake is expected to be completed within 12 weeks of executing the SPSHA, while the remaining 35% will be acquired over the next four years.
- Consideration: The transaction is structured as a cash consideration purchase.
Regulatory and Market Implications
JK Paper confirmed that no governmental or regulatory approvals are required for the acquisition. The deal does not fall under related party transactions, and none of the company’s promoters or group entities have an interest in QVPL.
The move is expected to strengthen JK Paper’s foothold in the animal nutrition market while leveraging QVPL’s expertise and market reach. As the global demand for high-quality animal nutrition products grows, this acquisition positions JK Paper strategically for long-term success in the industry.
With this acquisition, JK Paper continues to expand its business portfolio beyond paper manufacturing, further reinforcing its commitment to diversification and growth.