Havells to buy Lloyd’s consumer durable biz

THE ACQUISITION, when completed, will mark Havells’ foray into consumer durables industry THE TRANSACTION is subject to confirmatory due diligence and is expected to close in next eight weeks

New Delhi, Feb 19: The electrical goods company Havells on Sunday said it will acquire consumer durable business of Lloyd Electric & Engineering for about `1,600 crore.

“...(Havells’)board has approved the acquisition of Lloyd Consumer Durable Business Division (Lloyd Consumer). The acquisition is proposed to be executed at an enterprise value of `1,600 crores on a debt free, cash free basis subject to closing adjustments,” it said.

This acquisition, when completed, will mark Havells’ foray into consumer durables industry.

The transaction is subject to confirmatory due diligence and is expected to close in next eight weeks.

The company plans to finance the transaction through a mix of debt and internal accruals, the statement said.

“The proposed acquisition is in line with Havells objective of ‘Deeper into Homes’, driving domestic expansion and owning a brand and distribution oriented asset.

“We would leverage and extend the trust associated with brand Havells to consumers, dealers, vendors of Lloyd and create a similar recognition in consumer durables segment,” Havells India chairman & managing director Anil Rai Gupta said. The company said that it will completely acquire the consumer business of Lloyd.

The company has signed an agreement with Lloyd Electrical and Engineering Limited and Fedders Lloyd Corporation Limited for acquiring Lloyd brand and the consumer durable business.

The consumer business of Lloyd is engaged in sourcing, assembling, marketing and distribution of consumer durables, it added.