V-Guard Industries has completed the acquisition of 100% shareholding of Sunflame Enterprises (SEPL) for an aggregate consideration of Rs 680.33 crore computed after the closing adjustment as described in the Share Purchase agreement dated December 9, 2022. Out of the total consideration computed, an aggregate amount of Rs 25 crore will be paid to the selling shareholders after two years from the date of closure. Accordingly, Sunflame Enterprises has become a Wholly Owned Subsidiary of the Company with effect from January 12, 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.
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