Crompton Greaves Consumer zooms higher post Butterfly acquisition!
5paisa Research Team
Last Updated: 23rd February 2022 - 03:53 pm
The company will acquire a 55% stake in the kitchen and small domestic appliance player.
Crompton Greaves Consumer Electricals Ltd has announced the acquisition of a controlling stake in Butterfly Gandhimathi Appliances Ltd. The company will acquire up to a 55% stake in Butterfly Gandhimathi Appliances at Rs 1,403 per equity share, aggregating up to Rs 1,379.68 crore, the company told in a press release.
It will also acquire certain Butterfly trademarks in allied and cognate classes from promoter group entities for a consideration of Rs 30.38 crore, it added. The company will launch a mandatory open offer to Butterfly’s public shareholders for acquiring up to a 26% stake in the latter at Rs 1,433.9 per equity share.
"Crompton will launch the mandatory open offer to the public shareholders of Butterfly, for acquiring up to 26% stake in Butterfly at a price of Rs 1,433.90 per equity share, aggregating up to Rs 666.57 crore for an aggregate total consideration of up to INR 2,076.63 crore," said Crompton.
Butterfly's leading kitchen and small domestic appliances portfolio includes Mixer Grinders, Table Top Wet Grinders, Pressure Cookers, Stainless Steel Vacuum Flasks, LPG Stoves and Non-Stick Cookware. Butterfly is amongst the top 3 pan-India kitchen and small domestic appliances players. In South India, Butterfly is #1 in Table Top Wet Grinders and LPG Stoves, #2 in Mixer Grinders and #3 in Pressure Cookers.
The transaction will accelerate Crompton's long-term strategic goal of becoming a leading player in the small domestic appliances segment. Butterfly's complementary product portfolio coupled with scale and channel synergies will drive robust revenue growth and profitability.
At, 2.10 PM Butterfly was trading at Rs 1,396, up by 0.66% for the day, whereas Crompton was trading at Rs 405.15, surging 6.62%.
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