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Consumer electrical and electronics major V-Guard Industries will buy Sunflame Enterprises Private Ltd (SEPL) for 660 crore, on a cash-free, debt-free basis. The transaction will be funded through a mix of internal accruals and debt.

The transaction is expected to be completed by mid-January 2023, V-Guard said in a filing to stock exchanges on Friday.

The acquisition squares up with V-Guard’s strategy to have a major presence in the domestic kitchen appliances segment. Sunflame brand has a pan-India presence with a strong brand recall.

SEPL’s broad portfolio, product development capabilities and the recently established state-of-the-art integrated manufacturing facility provide the perfect opportunity for V-Guard to scale up its kitchen appliances business while unlocking synergy.

V-Guard reported net profit of 43.7 crore on net sales of 986 crore for the Q2 FY23.

Faridabad-based Sunflame Enterprises manufactures kitchen appliances including chimneys, pressure cookers, and mixer-grinders.

Deloitte Touche Tohmatsu India, Cyril Amarchand Mangaldas and Singhi Advisors provided financial, legal and transaction advisory services respectively to V-Guard.

“Sunflame is an iconic brand etched in the memory of Indian households and is expected to provide significant thrust to V-Guard’s plans to become a leading Indian Kitchen Appliances player," V-Guard MD Mithun Chittilappilly, said.

V. Ramachandran, COO, V-Guard, said, “SEPL acquisition is a synergistic fit, and offers multiple levers for unlocking significant synergies in areas like geography, product portfolio and channels."

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