Havell’s acquire German lighting firm Sylvania for $300 mn

Havell’s India has acquired Germany’s SLI Sylvania’s lighting business for $300 mn (about Rs. 1350 crores) in an all-cash deal, from a group of private equity firms. This is the biggest overseas takeover by an Indian electrical equipment manufacturer in the lighting business.

The acquisition was made through Havell’s Dutch subsidiary, Havell’s Netherlands BV and would be funded through a mix of debt and internal accruals. The combined revenues are expected to be $1 bn. Deutsche Bank was the advisor to Havell’s on the transaction and Barclays Capital would provide the financing to the deal.

SLI Sylvania operates in key geographies of Europe, Latin America and Africa through 10 manufacturing facilities. The company would get access to all of Sylvania’s markets across the world except Mexico, US, Australia and New Zealand where the business is owned by German lighting firm Osram, one of the largest lamp manufacturers in the world. Sylvania Osram had sold its lighting business to a consortium of three private equity funds comprising Subros, JP Morgan and DDG Capital and Havell’s has acquired the business from this consortium.

Read more on this in Moneycontrol.com.
Related Post:
Havell’s may buy UK lighting company for Rs. 1000 crores

Havell’s may buy UK lighting company for Rs. 1000 crores

Electrical and lighting products firm Havell’s India is close to buying a UK-based lighting products company for Rs. 1100 crores. The British company has revenues of more than $400 mn and has manufacturing assets in Latin America. This will be the largest overseas acquisition by an Indian company in the electrical products space. The deal will include the brand and other assets of the UK company; the name of the company has not been disclosed. Havell’s would raise up to Rs. 675 crores through qualified institutional placement. Some of the funds raised would be used, along with debt, to finance the acquisition. This will be Havell’s first overseas acquisition. The acquisition will more than double Havell’s size to a Rs. 3000 crore-company and would give it significant presence outside India.

Read the article in The Economic Times.