V-Guard to acquire Sunflame Enterprises for Rs 660 crore in all-cash deal
Electrical supplies and residence appliances manufacturer V-Guard strategies to purchase Delhi-dependent Sunflame Enterprises to unlock synergy rewards
Mumbai: Electrical and property appliances participant V-Guard Industries on Friday claimed it will purchase Sunflame Enterprises for Rs 660 crore in an all-money deal.
The acquisition of the Delhi-centered Sunflame will assistance V-Guard scale up its kitchen appliances business while also unlocking synergy rewards.
“We have entered into a definitive arrangement to obtain 100 for each cent stake of Sunflame Enterprises for Rs 660 crore in an all money offer,” the Kochi-based mostly company claimed in a statement.
Sunflame is a debt-free of charge enterprise and has about Rs 50 crore funds in-hand which does not include in the deal — implying the promoter of the advertising business will just take out that cash right before the deal is concluded. It had a prime-line of Rs 350 crore in FY22.
The acquisition is in line with V-Guard’s tactic to turn out to be a significant player in the domestic kitchen area appliances phase, it additional.
Sunflame has a huge brand name portfolio which includes cooktops, chimneys, force cookers, mixer grinders, smaller kitchen appliances and so on.
Mithun Chittilappilly, Taking care of Director of V-Guard, explained that the proposed acquisition is a important milestone in the company’s journey to have further engagement with its buyers by providing considerate solutions and activities.
He stated the transaction will be funded by means of a combine of inner accruals and financial debt with out providing a break up.
Even further, he reported that the offer is expected to offer major thrust to V-Guard’s ideas to grow to be a major kitchen appliances participant.
Sunflame Managing Director KL Verma reported that having started off out in 1981, the brand has appear a very long way.
The offer is expected to be shut by mid-January 2023, Deepak Ramani, a husband or wife at the Mumbai-based investment decision lender Singhi Advisors, which was the distinctive transaction advisor, advised PTI.
Launched in 1977 by Kochouseph Chittilapilly, Mithun’s father, V-Guard Industries is a primary client electrical and electronics manufacturer and is a publicly traded firm with revenue of Rs 3,498 crore in FY22. It operates by means of 32 branches and with above 50,000 channel companions.
It commenced with manufacturing and advertising and marketing voltage stabilizers beneath the V-Guard label and due to the fact then diversified into a multi-solution firm with a portfolio which contains inverters, inverter batteries, electric & photo voltaic h2o heaters, pump motors, domestic switchgears, electrical wires & cables, induction cooktops, mixer grinders, admirers, fuel stoves, air-coolers, kitchen area appliances, drinking water purifiers and so on.
