Consumer durables firm Bajaj Electricals today bought the non-stick cookware maker Nirlep Appliances for around Rs 80 crore, which includes equity and debt.
Aurangabad-based Nirlep, launched in 1968, is among the pioneering brands to introduce non-stick technology and is also the first domestic firm to export to Europe.
"We have proposed to acquire the entire shareholding of Nirlep for a consideration of Rs 42.50 crore, subject to adjustments of any additional liabilities for the period prior to acquisition," Bajaj Electricals said in a BSE filing.
This will help Bajaj Electricals cement its position in the fast-growing Rs 12,000-crore kitchenware category.
"We have agreed to sell the entire stake in Nirlep to Bajaj Electricals for around Rs 80 crore. The deal involves Rs 42.50 crore for 100 per cent equity and taking over around Rs 30 crore of debt. The rest is some deferred payment," Nirlep founder Mukund Bhogale said.
The deal will be completed in two tranches. In the first tranche, 80 per cent of shares will be acquired within 60 days from today and in the second tranche, the company has a right to exercise call option to acquire remaining 20 per cent of shares any time after closing date, Bajaj said.
Bajaj Electricals already has brands Bajaj and Morphy Richards in the electrical kitchen appliances under its belt, and this deal will give it a wider portfolio, according to Gaurav Agarwal, a director at i-banker Singhi Advisors that was the sole financial advisor to the deal.
The publicly traded Bajaj had over Rs 4,700 crore in revenue last fiscal and is the largest small appliances player in the country.
Following the acquisition, Nirlep will become a wholly-owned subsidiary of Bajaj Electricals, the company said in an exchange filing. The acquisition will give Bajaj exclusive access to Nirlep's manufacturing facility, people, distribution network and intellectual property rights.
Nirlep employs around 500 and had turnover of around Rs 100 crore in FY18.
Bajaj Electricals shares closed at Rs 537.30, up 0.82 per cent on the BSE, whose benchmark Sensex inched up 0.06 per cent today.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)