New Delhi, Feb 23 (PTI) Crompton Greaves Consumer Electricals Ltd (CGCEL) on Wednesday said it will acquire majority stake in Butterfly Gandhimathi Appliances.

It has signed a definitive agreement to "acquire up to 55 per cent stake at Rs 1,403.00 per equity share, aggregating up to Rs 1,379.68 crore", CGCEL said in a regulatory filing.

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It will also launch an open offer to public shareholders of Butterfly, for acquiring up to 26 per cent stake in Butterfly at a price of Rs 1,433.90 per share, aggregating up to Rs 666.57 crore; for total consideration of Rs 2,076.63 crore, it added.

"The transaction will accelerate Crompton's long-term strategic goal of becoming a leading player in the small domestic appliances segment," the company said.

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Butterfly's kitchen and small domestic appliances portfolio includes Mixer Grinders, Table Top Wet Grinders, Pressure Cookers, Stainless Steel Vacuum Flasks, LPG Stoves and Non-Stick Cookware.

It is is amongst the top 3 pan-India kitchen and small domestic appliances players, it added.

"Butterfly's complementary product portfolio coupled with scale and channel synergies will drive robust revenue growth and profitability," it said

In FY21, Butterfly reported revenues of Rs 870 crore.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)