Mumbai: Havell’s India Ltd, a maker of power-distribution equipment and lighting solutions products, said its Dutch unit has agreed to buy SLI Holdings Inc.’s lighting business for $300 million (Rs1,320 crore) to boost overseas revenue.
Havell’s Netherlands BV will buy the business owned by subsidiary SLI Sylvania, Havell’s India, based in Noida, near Delhi, said in a statement to the Bombay Stock Exchange.
Indian companies are buying rivals overseas to boost overseas revenue and introduce global brands locally.
Tata Steel’s acquisition of Corus and Hindalco’s buyout of Novelis are some notable instances of Indian companies spreading their wings overseas. Ranbaxy Laboratories, India’s biggest maker of generic drugs, on 13 March bid for a Merck KGaA unit to enter Europe.
Havell’s also plans to sell Sylvania products in India after the acquisition.
SLI Sylvania, based in Frankfurt, sells Concord:marlin, Lumiance, Marlin, Claude and Linolite brand of lights produced at its ten factories worldwide.
The Indian company expects two- thirds of its consolidated revenue to come from overseas markets.
Havell’s plans to raise $160 million of non-recourse debt and an additional $105 million in its units through a combination of debt and equity, the company said in the statement.
The balance amount will include liabilities such as unfunded pension that will remain in the balance sheet, Rajesh Gupta, finance director at Havell’s India, said in a phone interview from New Delhi.
“There will be no loans raised on our balance sheet directly,” he said.
Havell’s hired Barclays Capital for a five-year long-term loan and a working capital loan, Gupta said.
Deutsche Bank AG is the financial adviser.