According to V-Guard Industries (V-Guard), it has signed final agreements to buy a 100% share in Sunflame Enterprises Private Ltd. (SEPL) for a value of Rs. 660 crores, subject to closing adjustments.
By mid-January 2023, the deal is anticipated to be finalized.
The purchase is in line with V-plan Guard’s to dominate the domestic Kitchen Appliances market.
A combination of internal accruals and debt would be used to pay for the transaction.
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. We appreciate the trust reposed by SEPL’s Promoter family in us to take the Sunflame brand to greater heights.”
K. L. Verma, Managing Director, SEPL said, “Having started this journey in 1984, we have come a long way since then. V-Guard, a name synonymous with trust, is the right organization to take this legacy forward. We are confident that the Sunflame brand would scale even greater heights with V-Guard.”
Ramachandran, COO, V-Guard, said, “SEPL acquisition is a synergistic fit, and offers multiple levers for unlocking significant synergies in areas like geography, product portfolio, and channels. We believe that this deal is value accretive for the shareholders of V-Guard and would catapult the Company into the league of frontline Kitchen Appliances players in the country.”
V-Guard received transaction advice services from Singhi Advisors, Deloitte Touche Tohmatsu India, and Cyril Amarchand Mangaldas.
