V-Guard Industries (V-Guard) has signed definitive agreements for acquiring 100% stake in Sunflame Enterprises (SEPL) for a consideration of Rs 660 crore, on a cash-free, debt-free basis, subject to closing adjustments. The transaction is expected to close by mid of January 2023.
The acquisition is in line with V-Guard's strategy to become a significant player in the domestic Kitchen Appliances segment. The Sunflame brand has a pan India presence with a strong brand recall. SEPL's wide portfolio, product development capabilities and the recently established state-of-the-art integrated manufacturing facility provide the perfect opportunity for V-Guard to scale up its Kitchen Appliances business while also unlocking synergy benefits. The transaction would be funded through a mix of internal accruals and debt.
V-Guard Industries manufactures a range of products namely voltage stabilizers, pumps, electric water heaters, solar water heaters, cables, UPS, ceiling fans, etc.
