Corporate Announcement
Security Code : 517354    Company : HAVELLS    
Havells India - Press Release 
  Exchange Disseminated Time     
Havells India Ltd has announced that in what will be the largest acquisition by an Indian electrical products Company, Havell's Netherlands BV, a Netherlands incorporated subsidiary of the Company, signed an agreement with SLI Holdings Inc., 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$105 mn by way of loans / equity through Havell's subsidiaries ("Recourse Borrowers") guaranteed by the Company.

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".

SLI Sylvania, which is headquartered in Frankfurt is a Leading global designer and provider of the Lighting systems for lamps and fixtures. Sylvania is one of the most globally recognized brand for over a century in the electrical industry. SLI Sylvania has 10 manufacturing plants located across Europe, Latin America and Africa with an employee strength of more than 4,000. As per the annual accounts for the year ended Dec 31, 2006. SLI Sylvania generated revenues of US$594mn and a normalized EBIDTA** of US$ 41.2 mn.

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.

SLI Sylvania is the principal Company behind many of the world's best known professional and consumer Lighting brands - including Sylvania, Concord:marlin, Lumiance, Marlin, Claude and Linolite-Sylvania. It has been marketing fixtures, lamps and other Lighting products to variety of customers including architects, designers, electrical distributors, select retailers, including OEM and other lighting manufacturers.

* Sylvania Lighting Europe BV, Lighthouse Investment Holdings BVI and SLI Lighting Products Inc, which together with their subsidiaries represent SLI Sylvania's lighting business

** normalised EBITDA is before restructuring costs, one-off costs and management costs incurred / allocated by the Seller (such management cost is expected to add around US$ 3.5 mn to SLI Sylvania's annual recurring costs on a going forward basis).


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