Hindustan Unilever Limited said it has signed an agreement to sell its Pureit water business AO Smith, for an enterprise value of Rs601 crore.
Launched two decades ago, the water purification brand is part of HUL’s home care business with revenues of Rs 293 crore during FY24. “This move is in line with our strategic intent to focus sharply on our core categories,” said Rohit Jawa, CEO and Managing Director of HUL.
The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction, which will take about three months. The proposed transaction is to be undertaken by way of a slump sale through a business transfer agreement, it said.
“The Pureit brand, known for innovative water purification products, strong brand recognition and dedication to customer service, complements AO Smith’s geographic and channel presence. The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to A O Smith in India,” Parag Kulkarni, president of A O Smith India Water Products Private Limited, said.
For over a decade, HUL has been selling non-core brands and assets especially in foods. Last year, it sold atta and salt business under the brands Annapurna and Captain Cook to Reactivate Brands International, a Singapore-headquartered company for Rs 60.4 crore. Few years ago, it sold bread and bakery business under the Modern brand to the Everstone Group and rice exports business to LT Foods.
