V-Guard to acquire 100% stake in Sunflame Enterprise
New Delhi: V-Guard Industries (V-Guard) will acquire 100% stake in the Sunflame Enterprise, a kitchen appliance company for a deal pegged at Rs 660 crores on a debt-free and cash-free basis. This definitive agreement was signed today that is on 9th of december 2022.
The deal will be funded through a mix of internal accruals and debt. This acquisition is in line with V-Guard’s strategy to become a important player in the domestic kitchen appliances segment. SEPL has a pan-India presence operating under its Sunflame brand. By mid January 2023 the deal is expected to close. Deloitte Touche Tohmatsu India, Singhi Advisors and Cyril Amarchand Mangaldas provided financial, legal and transaction advisory services to the V-Guard company.
Mithun Chittilappilly, Managing Director, V-Guard states, “The proposed acquisition is a significant milestone in V-Guard’s journey to have deeper engagement with its customers by offering thoughtful products and services. Sunflame is an iconic brand etched in the memories of Indian households. It is expected to provide significant drive to V-Guard’s plans to become a leading Indian Kitchen Appliances player. We appreciate the trust reposed by SEPL’s Promoter family on us to take the Sunflame brand to greater heights.”
“Since beginning this journey in 1984, we have come a long way and we are proud of the Sunflame legacy, having earned and kept the trust of our consumers and partners for nearly four decades. V-Guard a name synonymous with trust, is the right organization to take forward this legacy. We are hopeful that the Sunflame brand would achieve even greater heights with V-Guard,” said Managing Director of Sunflme Enterprise, K. L. Verma.