V-Guard Industries to acquire 100% stake in Sunflame Enterprises

12 Dec 2022 , 09:17 AM

V-Guard Industries (V-Guard) has announced that it has signed definitive agreements today for acquiring 100% stake in Sunflame Enterprises Private Ltd. (SEPL) for a consideration of Rs660 crore, on a cash-free, debt-free basis, subject to closing adjustments. The transaction is expected to close by mid of January 2023.

The acquisition is in line with V-Guard’s strategy to become a significant player in the domestic Kitchen Appliances segment. The Sunflame brand has a pan India presence with a strong brand recall. SEPL’s wide portfolio, product development capabilities and the recently established state-of-the-art integrated manufacturing facility provide the perfect opportunity for V-Guard to scale up its Kitchen Appliances business while also unlocking synergy benefits.

The transaction would be funded through a mix of internal accruals and debt.

Speaking on the occasion, Mithun Chittilappilly, Managing Director, V-Guard, said, “The proposed acquisition is a key milestone in V-Guard’s journey to have deeper engagement with its consumers by providing thoughtful products and experiences. Sunflame is an iconic brand etched in the memories of Indian households and is expected to provide significant thrust to V-Guard’s plans to become a leading Indian Kitchen Appliances player. We appreciate the trust reposed by SEPL’s Promoter family in us to take the Sunflame brand to greater heights.”

Deloitte Touche Tohmatsu India, Cyril Amarchand Mangaldas and Singhi Advisors provided financial, legal and transaction advisory services respectively to V-Guard.

At around 9:17 AM, V-Guard Industries Ltd is currently trading at Rs257.20 per share down by Rs2.6 or 1% from its previous closing of Rs259.80 per share on the BSE.

For feedback and suggestions, write to us at [e-mail]