**JK Paper Ltd Acquires Quadragen Vethealth Pvt. Ltd for ₹460 Crore to Expand into Specialty Animal Health Sector**
JK Paper Ltd, a prominent player in the paper and packaging solutions industry, has completed the acquisition of Quadragen Vethealth Pvt. Ltd (QVPL) for ₹460 crore in an all-cash transaction. This strategic move aims to diversify JK Paper’s portfolio into the specialty animal health, nutrition, and feed additives market. According to an exchange filing on Wednesday, the deal involves an initial acquisition of a 65% stake in QVPL, with plans to acquire the remaining shares over the next four years.
Harsh Pati Singhania, chairman and managing director of JK Paper, emphasized the significance of this acquisition, stating, “This is a strategic acquisition in a promising and rapidly developing industry segment and provides a new opportunity for the company to grow.” Following the announcement, JK Paper’s shares experienced a decline of 6.5%, trading at ₹356.65 each, while the Sensex rose by 0.39%.
QVPL specializes in the manufacturing, marketing, and exporting of animal nutrition products, including feed additives and growth promoters. The Bengaluru-based company boasts EBITDA margins exceeding 30% and is experiencing a compound annual growth rate of 20%, as noted in the filing. The transaction was facilitated by Singhi Advisors, marking JK Paper’s fourth acquisition in the past 2.5 years, following previous purchases of Radhesham Wellpack Pvt. Ltd and Manipal Utility Packaging Solutions Pvt. Ltd.
In December, JK Paper undertook a restructuring initiative, merging its three wholly-owned subsidiaries—Horizon Packs Pvt. Ltd, Securipax Packaging Pvt. Ltd, and JKPL Utility Packaging Solutions—into JK Paper to enhance operational efficiency.
However, the company reported a decline in net profit, which fell to ₹65.39 crore for the quarter ending December, down from ₹235.11 crore in the same period the previous year. Revenue from operations also decreased to ₹1,631.99 crore from ₹1,706.22 crore. Singhania attributed this downturn to a sharp increase in low-priced imports that negatively impacted sales volume and pricing in the paper and board sector, compounded by persistently high wood costs.
JK Paper is recognized as one of the leading producers of coated paper and packaging products in India, offering a diverse range of products including copiers, bonds, coated papers, virgin fiber packaging boards, high-end maplitho, food-grade papers, boards, corrugated boxes, mono cartons, and labels.
