Crompton Greaves Consumer Electricals has signed definitive agreements to buy up to 55% stake in Butterfly Gandhimati Appliances. 1,403 per equity share, in total 1,379.68 crores. It will also acquire certain BUTTERFLY trademarks in affiliated and cognate classes from the entities of the Promoter Group to consider the following 30.38 crores.
Crompton will launch a mandatory open offer for public shareholders of Butterfly to acquire a 26% stake in Butterfly at the cost of Rs. 1,433.9 per equity share, in aggregate 666.57 crore; for a total consideration of up to INR 2,076.63 crore,” the company announced in an exchange filing today.
The transaction will be subject to the completion of customary closing conditions and is expected to be financed through a mix of internal accruals and debt.
The transaction will accelerate Crompton’s long-term strategic goal of becoming a leading player in the small home appliance segment. In addition, scale and channel synergies with Butterfly’s complementary product portfolio will drive strong revenue growth and profitability, the company said in a release,
Butterfly is one of the top 3 pan-India kitchen and small home appliances players. Its flagship kitchen and small home appliances portfolio includes mixer grinders, table top wet grinders, pressure cookers, stainless steel vacuum flasks, LPG stoves and non-stick cookware. In FY21, Butterfly reported revenue of 870 cr with EBITDA 80 crores.
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