V-Guard Industries has completed the acquisition of Sunflame Enterprises’ (SEPL) 100% shareholding for an aggregate consideration of Rs 680.33 crore after the closing adjustment described in the Share Purchase agreement dated December 9, 2022. After two years from the date of closure, the selling shareholders will receive an aggregate payment of Rs 25 crore from the total consideration computed. As a result, Sunflame Enterprises became a Wholly Owned Subsidiary of the Company on January 12, 2023.
The acquisition is consistent with V-strategy Guard’s of becoming a significant player in the domestic Kitchen Appliances segment. Sunflame has a strong brand recall across India. SEPL’s diverse portfolio, product development capabilities, and recently established state-of-the-art integrated manufacturing facility provide V-Guard with an ideal opportunity to scale up its Kitchen Appliances business while also realising synergy benefits. The transaction would be funded through a combination of internal accruals and debt.
V-Guard Industries manufactures voltage stabilisers, pumps, electric water heaters, solar water heaters, cables, UPS, ceiling fans, and other products.