butterfly: Crompton to buy 55% stake in ‘Butterfly’ for Rs 2,076 crore – Times of India

butterfly:  Crompton to buy 55% stake in ‘Butterfly’ for Rs 2,076 crore - Times of India

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CHENNAI: Crompton Greaves Consumer Electronics has said it is acquiring a controlling stake of up to 55% through certain promoter group members in Butterfly Gandhimathi Appliances, makers of kitchen and small domestic appliances (SDAs) under the ‘Butterfly’ brand. Together with a 26% open offer, the acquisition cost would work out to Rs 2,076 crore.
The investment includes buying a controlling interest in Gandhimathi for close to Rs 1,380 crore (at Rs 1,403 per share), besides certain Butterfly trademarks for Rs 30 crore and an open offer for 26% stake worth Rs 666 crore at Rs 1,434 per share, the company informed the BSE. The acquisition is expected to be financed through a mix of internal accruals and debt, Crompton Greaves said.
“Butterfly is an attractive fit with Crompton’s long-term strategy, vision and strategic pillars. This provides support to our long-term vision of become a leading pan-India kitchen appliances player. Butterfly’s channel and brand strategy will form the base for a stronger SDA business led by mixer grinders. This sets up a platform for a full kitchen play, which will enable a stronger connect with every home,” Crompton MD Shantanu Khosla said.



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