New Delhi: Consumer durables maker Whirlpool of India Ltd on Monday said it has inked a pact to acquire an additional 38 percent stake in Elica PB India for $57 million (around ₹420 crores).
The company said it has entered into a share purchase agreement with Elica to acquire the additional equity interest in Elica PB India to bring its total equity ownership to 87 percent.
The transaction is expected to close by the end of September 2021, Whirlpool of India said in a statement.
After the completion of the deal, Elica PB India will become a majority-owned subsidiary of Whirlpool India, it added.
Both organizations would, however, continue to run their operations similar to their current state, the consumer durables maker noted.
Whirlpool India had in 2018 acquired a 49 percent stake in Elica PB India, which produces diverse models of kitchen hoods, hobs, and cooktops.
“We are very excited about this transaction and it is aligned with our ambition to accelerate profitable growth in India,” Whirlpool of India Managing Director Vishal Bhola said.
Cooking and built-in appliances are under-penetrated categories and the demand has now accelerated with consumers picking up cooking as a passion and investing more in their kitchens, he noted.
“Our consumers have always been at the heart of our business and now with both Elica and Whirlpool brands, we are in an even better position to improve life at home for them,” Bhola said.
Elica PB India CEO and Director Pralhad Bhutada said over the last decade, the company has built a very strong product portfolio and distribution network in India, which it has been harnessing for the last three years to build both the Elica and Whirlpool brands in the cooking category.
Whirlpool is one of the industry leaders in the laundry and refrigeration segments in India.