Havells India, the electrical equipment manufacturing company has acquired the consumer durable business (CDB) of Lloyd Electric and Engineering for an enterprise value of Rs 1,600 crore.
The company inked an agreement with Lloyd Electrical and Engineering and Fedders Lloyd Corp to acquire the Lloyd brand and the consumer durable business.
The company will acquire the consumer business infrastructure, people, distribution network including and not limited to absolute, exclusive ownership and right to all intellectual property of Brand Lloyd, trademark, logo, goodwill and attendant rights.
However, the deal does not include manufacturing units and the low margin original equipment manufacturer (OEM) piece and the projects business which supplies ACs to railways.
The deal is subject to confirmatory due diligence and is expected to close in the next eight weeks. The acquisition will be funded through a combination of internal accruals and debt. The company is looking at raising Rs 500-700 crore in debt financing and modalities which will fructify in 45 days.