Mumbai, March 13: Havell’s India today said it has acquired SLI Sylvania’s lighting business for $300 million (about Rs 1,350 crore), the biggest overseas takeover by an Indian electrical equipment manufacturer.
“We have acquired Sylvania’s lighting business for $300 million through our Dutch subsidiary, Havell’s Netherlands BV... The combined revenues are expected to be $1 billion,” Havell’s joint managing director Anil Gupta said here.
The all-cash deal would be funded through a mix of debt and internal accruals. The subsidiary would raise a debt of $265 million from Barclays Bank to fund the deal. Havell’s shares jumped 6.8 per cent to Rs 476.20 in intra-day trading on the BSE.
SLI Sylvania operates in key geographies of Europe, Latin America and Africa through 10 manufacturing facilities.
“The takeover would give us access to all the key markets in Europe, Latin America and Africa where Sylvania has a stronghold. Post-acquisition, we would target emerging markets in North Africa and Asia,” Gupta said.
The company would get access to Sylvania’s markets across the world except Mexico, the US, Australia and New Zealand where the business is owned by Osram. Sylvania Osram had sold its lighting business to a consortium of three private equity funds comprising Subros, JP Morgan and DDG Capital. Havells has acquired the business from the consortium.
Gupta said Sylvania would operate as Havell's subsidiary, Havell’s Sylvania, and the company would continue marketing its popular brands under the same name.
The transaction is expected to be completed in April-May this year. For the year ended December 31, 2006, SLI Sylvania had generated revenues of $594 million. Sylvania sells professional and consumer lighting brands like Sylvania Concord Marlin, Lumiance, Claude, Zenith and Linolite-Sylvania.
“The takeover would give us a platform to market the Havell’s brand in a better way through Sylvania’s distribution network of over 10,000 dealers spread across the globe. We would also introduce Sylvania’s lighting brands in India but are currently working on the branding,” Gupta said.
