Electrical goods maker Havells India Ltd has acquired the consumer durables division of for Rs 1,600 crore. The deal is expected to close in two months.
A statement by Havells said the acquisition is at an enterprise value of Rs1,600 crore on a debt-free, cash-free basis subject to closing adjustments. Any debt this division may have at the time of transfer as a going concern will be deducted from the transaction value of Rs1,600 crore. The acquisition covers consumer business infrastructure, people, distribution network and intellectual property relating to the brand Lloyd.
Noida headquartered Havells will acquire the consumer business infrastructure, people, distribution network including and not limited to absolute, exclusive ownership and right to all intellectual property of Brand Lloyd, logo, trademark, goodwill and attendant rights. However the manufacturing units along with the low margin original equipment manufacturer (OEM) piece and the projects business that supplies ACs to railways have been kept out of this deal.
The consumer durables division of Lloyd Electrical, called Lloyd Consumer, is engaged in sourcing, assembling, marketing and distribution of products such as air conditioners, televisions, washing machines and other household appliances.
The acquisition will give Havells access to 10,000 plus direct and indirect dealer networks spread across India, 485 authorized service centre and 31 company owned service centre, highly complementary for its existing consumer durable business.
Even though ACs remain its key growth drivers, over the last few years, Lloyd Electric has expanded its branded product portfolio such as air purifiers, inverter Air Conditioners, portable Air Conditioners, Dry Coolers, state-of-the-art Air Conditioners, Ultra HD technology LED TV’s, Washing Machines, Chest Freezers, Refrigerators, Room Heaters, and other small appliances.
Havells is also looking forward to enter into the personal grooming segment and eyeing baby care segment.