 "Hindustan Uniliver, HUL")
Hindustan Uniliver (Photo: Bloomberg)
Hindustan Unilever (HUL) on Monday announced that it has signed an agreement for the sale of its Pureit business in India to A. O. Smith, a leading global water technology company, for an enterprise value of $72 million (Rs 601 crore), both companies said in their respective press releases.
The acquisition of Pureit is expected to close by the end of 2024 and is not expected to have a material impact on earnings in the first year, A. O. Smith said in its release.
Rohit Jawa, chief executive officer and managing director of HUL, was quoted as saying in the release, “This move is in line with our strategic intent to focus sharply on our core categories. Pureit provides essential water purification solutions to millions of loyal consumers, and I am confident the brand will thrive further under the ownership of A. O. Smith.”
“The proposed transaction will happen by way of a slump sale through a business transfer agreement between HUL and A. O. Smith India Water Products,” HUL said in its stock exchange filing.
In FY24, the turnover of the water purification business stood at Rs 293 crore, which is less than one per cent of HUL’s turnover.
The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction.
“We believe the addition of Pureit will strengthen our leadership position as a global supplier of premium water treatment products and will double our market penetration in South Asia. The acquisition will also support our corporate strategy by enhancing our premium product portfolio and distribution capabilities,” said Kevin J. Wheeler, chairman and chief executive officer at A. O. Smith Corp.
Parag Kulkarni, president of A. O. Smith India Water Products, said in the release, “The Pureit brand, known for innovative water purification products, strong brand recognition and dedication to customer service, complements A. O. Smith’s geographic and channel presence. The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to A. O. Smith in India, and we look forward to welcoming the Pureit team to the A. O. Smith family.”
First Published: Jul 15 2024 | 5:03 PM IST
