Crompton Greaves Consumer Electricals acquires of controlling stake in Butterfly Gandhimathi Appliances
Mumbai : Electrical consumer durables company Crompton has signed definitive agreements to acquire upto 55% stake in Butterfly, a company engaged in the manufacturing, marketing and distribution of kitchen and small domestic appliances (SDA), at a price of INR 1,403.00 per equity share, and Trademarks for a consideration of INR 30.38 crore.
Crompton will also launch the mandatory open offer to the public shareholders of Butterfly for the acquisition of up to 26% stake at a price of INR 1,433.90 per equity share. The transaction will be subject to completion of customary closing conditions. The transaction is expected to be financed through a mix of internal accruals and debt.
This acquisition is a transformational step towards Crompton’s long-term strategic goal of becoming a leading pan-India player in small domestic appliances. As one of the few integrated manufacturers in this space, Butterfly offers immediate scale in kitchen appliances with its diverse portfolio, increasing the share of SDA in Crompton’s offering. This diverse portfolio spans a complementary set of segments, including mixer grinders, stoves and cook tops, table top wet grinders, pressure cookers, etc.
Acquiring the Trademarks enables the protection of the exclusivity, legacy, and goodwill of the intellectual property of Butterfly as well as consolidation and expansion in complementary segments. Backed by a ready manufacturing and R&D infrastructure along with company’s key capabilities and pan-India reach, Butterfly creates a strong opportunity for innovation and expansion in core and adjacent categories and is expected to unlock synergies for both companies.