V-Guard Industries (V-Guard) is going to acquire 100% stake in kitchen appliance company Sunflame Enterprises for a deal pegged at Rs 660 crore on a cash-free and debt-free basis. The definitive agreement was signed on Friday.
The deal will be funded through a mix of internal accruals and debt. The acquisition is in line with V-Guard’s strategy to become a significant player in the domestic kitchen appliances segment. SEPL has a pan India presence operating under its Sunflame brand. The deal is expected to close by mid-January 2023.
Singhi Advisors were the exclusive transaction advisors. Deloitte Touche Tohmatsu India and Cyril Amarchand Mangaldas provided financial and legal advisory services respectively to V-Guard.
Mithun Chittilappilly, managing director at V-Guard, said the proposed acquisition is a key milestone in V-Guard’s journey to have deeper engagement with its consumers. He said Sunflame is an iconic brand and is expected to provide significant thrust to V-Guard’s plans to become a leading Indian Kitchen appliances player.
KL Verma, managing director at Sunflame Enterprises, said the company is confident that Sunflame would scale even greater heights with V-Guard.
Source: Economic Times