Bajaj Electricals has entered into an agreement to fully acquire cookware brand Nirlep Appliances for a consideration of Rs42.50 crore.
Subsequent to the proposed acquisition, Nirlep will become a wholly owned subsidiary of Bajaj Electricals.
“The company has proposed to acquire the entire shareholding (100%) of Nirlep for a consideration of Rs42.50 crore, subject to adjustments of any additional liabilities for the period prior to acquisition,” Bajaj Electricals said in a BSE filing.
The company said the proposed acquisition will provide portfolio of products which complements with the offerings of Bajaj Electricals and is a perfect synergic blend.
“The proposed acquisition will make available a running business setup and other synergic benefits to the company. It shall also give the company an exclusive access to Nirlep brand, the state of art manufacturing facility, people, distribution network, intellectual property rights and goodwill of Nirlep,” it added.
Bajaj Electricals said it has agreed to complete the acquisition of entire shareholding of Nirlep in two tranches. In the first tranche, 80% of shares will be acquired on closing date that is within 60 days from the date of agreement and in the second tranche, the company has a right to exercise call option to acquire remaining 20% of shares any time after closing date.
Source: Mint