V-Guard Industries has announced that it has signed definitive agreements for acquiring 100 per cent stake in Sunflame Enterprises Private Ltd for a consideration of ₹660 crore, on a cash-free, debt-free basis, subject to closing adjustments. The transaction is expected to close by mid-January.
Sunflame Enterprises is one of the leading players in the kitchen appliances space with a pan-India presence.
Kitchen appliances segment
The acquisition is in line with V-Guard’s strategy to become a significant player in the domestic kitchen appliances segment. SEPL’s wide portfolio, product development capabilities and the recently established 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.
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.”
Deloitte Touche Tohmatsu India, Cyril Amarchand Mangaldas and Singhi Advisors provided financial, legal and transaction advisory services, respectively to V-Guard.