Crompton Greaves Consumer Electricals has signed definitive agreements to acquire upto 55% stake of Butterfly Gandhimathi Appliances at ₹1,403 per equity share, aggregating upto ₹1,379.68 crore. It will also acquire certain Butterfly trademarks in allied and cognate classes from promoter group entities for a consideration of ₹30.38 crore.
“Crompton will launch the mandatory open offer to the public shareholders of Butterfly, for acquiring upto 26% stake in Butterfly at a price of ₹1,433.9 per equity share, aggregating upto ₹666.57 crore; for an aggregate total consideration of upto INR 2,076.63 crore,” the company announced in an exchange filing today.
The transaction will be subject to completion of customary closing conditions and is expected to be financed through a mix of internal accruals and debt.
The transaction will accelerate Crompton’s long-term strategic goal of becoming a leading player in the small domestic appliances segment. Further, Butterfly’s complementary product portfolio coupled with scale and channel synergies will drive robust revenue growth and profitability, the company said in a release,
Butterfly is amongst the top 3 pan-India kitchen and small domestic appliances players. Its leading kitchen and small domestic appliances portfolio includes mixer grinders, table top wet grinders, pressure cookers, stainless steel vacuum flasks, LPG stoves and non-stick cookware. In FY21, Butterfly reported revenues of ₹870 crore with EBITDA of ₹80 crore.
Source: Mint