Consumer durables firm Bajaj Electricals has entered into an agreement to acquire the entire stake in non-stick cookware company Nirlep Appliances for ₹42.50 crore in cash. Subsequent to the acquisition, Nirlep will become a wholly-owned subsidiary of Bajaj Electricals.

“The proposed acquisition will provide a portfolio of products which complements with the offerings of Bajaj Electricals and is a perfect synergy blend. The proposed acquisition will make available a running business set up and other synergic benefits to the company,” Bajaj Electricals said in a regulatory filing.

The acquisition will also give the company an “exclusive access” to Nirlep brand, its manufacturing facility, employees, distribution network, intellectual property rights and goodwill, it added.

Aurangabad-based Nirlep Appliances had posted a turnover of ₹47 crore as of March 31, 2018. Mumbai-based Investment bank Singhi Advisors was the financial adviser to the transaction, while Vaish Associates, a collaborating firm of the Andersen Global network, was the legal advisor to Nirlep.

“This acquisition will provide Bajaj with a strong foothold in the non-electrical kitchen category and access to quality manufacturing setup in western India. Together with its existing strong presence in the electrical kitchen appliances with brands like Bajaj and Morphy Richards under its fold, this acquisition will provide Bajaj a complementary product portfolio in this fast growing ₹12,000-crore kitchenware category,” Gaurav Agarwal, Director, Singhi Advisors said in a statement.

Bajaj Electricals, which had signed a share purchase and shareholders’ agreement agreement on Friday, has agreed to complete the acquisition in two tranches.

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