In what will be the largest acquisition by an Indian electrical products company, Havell's Netherlands BV, a Netherlands incorporated subsidiary of Havell's, signed an agreement with SLI Holdings, to acquire SLI Sylvania's lighting business at an aggregate purchase price of US$300mn.
The acquisition is expected to be financed with non-recourse debt facilities of US$160mn and recourse facilities of US$105mn by way of loans/equity through Havell's subsidiaries (“Recourse Borrowers”) guaranteed by Havell's India.
Deutsche Bank Group is the financial advisor to Havell's on the transaction. Barclays Capital is acting the lead arranger for the financing.
Key Highlights:
• US$300mn all-cash acquisition: Largest ever acquisition by an Indian Electrical company
• Sylvania is one of the Largest Lighting Companies globally
• The combined turnover of the two entities of nearly US$ 1 Billion
• Post acquisition nearly two-third of Havell's consolidated revenues to come from international markets
• SLI Sylvania's 10 manufacturing plants located across Europe , Latin America and Africa comes under Havell's ambit
• Havells gets access to a strong brand & distribution network with over 10,000 distributors/ dealers spread across the globe
• Some of the leading professional and consumer lighting brands like Sylvania , Concord :marlin, Lumiance, Marlin, Claude and Linolite-Sylvania comes under Havell's fold
Speaking on the occasion, Mr. Qimat Rai Gupta- CMD, Havell's said “ Sylvania 's acquisition is a first step towards attaining leading position in the global lighting industry with a strong presence in the developed markets of Europe and high growth Latin American markets. This acquisition will provide us a platform with strong brands and established distribution channels on which Havell's can build on. Further, the management team responsible for SLI Sylvania's turnaround will continue to remain with the business and grow the combined organization”
Paul Griswold, CEO of SLI Sylvania added “The management team is extremely excited about the Transaction and believes that SLI Sylvania is well-poised to effectively exploit the opportunities ahead with significant synergies to be realized by the combined organization”
Sanjay Agarwal, Managing Director and Head, Global Corporate Finance, India for Deutsche Bank mentioned that “This transformational transaction leapfrogs Havell's into the global league with the sheer scale and breadth of Global footprint acquired and demonstrates the strong execution capabilities of the management team.”
This landmark acquisition provides Havells with the opportunity not only to expand its product portfolio in the European, Latin American and other developed markets of the west but also to launch Sylvania in India. |
