Havells to acquire durable business of Lloyd Electric

The electrical goods company Havells will acquire consumer durable business of Lloyd Electric & Engineering for about Rs 1,600 cr. The acquisition is proposed to be executed at an enterprise value of Rs 1,600 cr. on a debt free, cash free basis subject to closing adjustments.

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 8 weeks. The company plans to finance the transaction through a mix of debt and internal accruals. The proposed acquisition is in line with Havells objective of deeper into homes, driving domestic expansion and owning a brand and distribution oriented asset.

The consumer business of Lloyd is engaged in sourcing, assembling, marketing and distribution of consumer durables including air-conditioners, TVs, washing machines and other household appliances. Havells will acquire the consumer business infrastructure, people, distribution network including and not limited to absolute, exclusive ownership and right to all intellectual property of Lloyd, Logo, Trademark, goodwill and attendant rights.

Lloyd which is among the top 3 brands in air-conditioner category has expanded into TVs and washing machines as well. Through this acquisition, Havells would make a foray into Consumer durables industry currently estimated at $15 Billion and growing in double digits with low penetration levels, increasing urbanization, aspirational and expanding middle class.