Shares of Zydus Wellness Ltd rallied 7.5% to hit a day’s high of Rs 2,197.50 on 1st September after the company announced its first overseas acquisition, acquiring UK-based Comfort Click in a deal worth £239 million.

Comfort Click, based in the UK, operates in the vitamins, minerals and supplements (VMS) space. This is a market worth about £11 billion in Europe.

The company has delivered strong growth, with a 57% five-year CAGR. Revenues rose from £52 million in FY23 to £85 million in FY24 and further to £134 million in FY25. It reported an adjusted operating profit of £21 million with margins of 15.6%, higher than Zydus Wellness’ 14%. The deal values Comfort Click at 2 times sales and 10 times EBITDA. Zydus said the acquisition will be cash EPS accretive from the start.

Strategic benefits include Comfort Click’s strong presence in complementary markets, its e-commerce and direct-to-consumer (D2C) business model. Also, there is access to the UK and US for Zydus’ existing products. Furthermore, there is an opportunity to bring Comfort Click’s VMS products to India.

Under the share purchase agreement, Alidac acquired full control of Comfort Click. This makes it a wholly-owned subsidiary of Alidac and a step-down subsidiary of Zydus Wellness. The company is headquartered in the UK, operates across Europe, and is expanding in the US.

At 11:14 AM, the shares of Zydus Wellness were trading 7.10% higher at Rs 2,162.10 on NSE.

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