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Crompton Greaves Consumer to acquire controlling stake in Butterfly Gandhimathi Appliances

Crompton Greaves Consumer Electricals has signed definitive agreements to acquire upto 55% of the stake of Butterfly Gandhimathi Appliances at Rs 1,403 per share, aggregating upto ₹1,379.68 crore. It will also acquire certain Butterfly trademarks in allied and cognate classes from Promoter Group entities for ₹30.38 crore.

Crompton will launch the mandatory open offer to the public shareholders of Butterfly, to acquire a stake of up to 26% in Butterfly at a price of Rs 1,433.9 per equity share, aggregating upto Rs 666.57 crore; for an aggregate total consideration of upto INR 2,076.63 crore,” the company announced in an exchange filing today.

The transaction will be subject to the completion of customary closing conditions and is expected to be financed through a mix of internal accruals and debt.

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The transaction will accelerate Crompton's long-term strategic goal of becoming a leading player in the small appliance sector. Additionally, the company said in a statement that Butterfly's complementary product portfolio, coupled with synergies in scale and channels, will result in strong growth in revenue and profitability.

Butterfly is among the top 3 pan-India kitchen and small domestic appliances players. The leading kitchen and small appliance range includes mixer grinders, tabletop wet grinders, pressure cookers, stainless steel vacuum flasks, LPG stoves and non-stick cookware. In FY21, Butterfly reported revenue of Rs 870 crore with EBITDA of Rs 80 crore.

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