PE Fund Investments
Crompton Greaves to acquire 81% in kitchen appliances maker Butterfly for Rs.2,077-Cr
Mumbai-based Crompton Greaves Consumer Electricals Ltd is to acquire a controlling stake in Chennai-based, fellow publicly listed kitchen appliances maker Butterfly Gandhimathi Appliances Ltd, in a INR 2,076.63 crore deal. It will acquire a 55% stake from certain promoter groups of Butterfly at INR 1,403 per equity share aggregating to INR 1,379.68 crore. It will also buy certain Butterfly trademarks for INR 30.38 crore. Crompton will launch the mandatory open offer to the public shareholders of Butterfly for acquiring an up to 26% stake in the company for INR 666.57 crore. Kotak Investment Banking is the financial advisor and manager to the open offer for Crompton and Khaitan & Co. is the legal advisor for the buyer. For FY21, Butterfly had reported revenues of INR 870 crore and an EBITDA of INR 80 crore. In the first nine months of FY22, it reported revenues of INR 806 crore and and an EBITDA of INR 75 crore.
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