Leading electrical goods company Havells India is set to acquire the consumer durables business of Lloyd Electrical and Engineering for an enterprise value of ₹1,600 crore.

The acquisition will help Havells India gain an entry in the fast-growing consumer durables segment, especially the air-conditioners, where Lloyd is a leading brand.

“The company has signed an agreement with Lloyd Electrical and Engineering Ltd and Fedders Lloyd Corporation Ltd for acquiring the Lloyd brand and the consumer durables business that is engaged in sourcing, assembling, marketing and distribution of consumer durables, including air-conditioners, TVs, washing machines and other household appliances,” it said in a statement.

Funding plan

The transaction, which is subject to confirmatory due diligence, is expected to close in eight weeks. Havells India will be funding this transaction through a mix of debt and internal accruals.

Under the proposed acquisition, Havells will acquire the consumer business infrastructure, distribution network including and not limited to absolute, exclusive ownership and right to all intellectual property of Brand Lloyd, logo, trademark, goodwill and attendant rights, it said, adding that it will also absorb the workforce.

Anil Rai Gupta, Chairman and Managing Director, Havells India, said that the acquisition is in line with the company’s strategy to go deeper into home, 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 durable segments,” he said, adding that this acquisition will give the company an opportunity to serve its discerning consumers with a wider range of products.

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