Warren Buffet’s Duracell eyes Eveready’s battery & flashlight business
Category: #business  By Hrishikesh Kadam  Date: 2019-09-09
  • share
  • Twitter
  • Facebook
  • LinkedIn

Warren Buffet’s Duracell eyes Eveready’s battery & flashlight business

Warren Buffet’s Berkshire Hathaway owned battery manufacturer, Duracell Inc., has reportedly beaten industry rival Energizer Holdings and is set to take over the flagship company of BM Khaitan, Eveready Industries’ battery and flashlight operations in a slump sale for INR 16-1,700 crore.

As per terms of the deal, both Duracell and the Williamson Magor group will utilize Eveready’s existing distribution brand and network for their respective businesses.

Sources familiar with the development have informed that the all-cash transaction is currently in the final stages of negotiation and is expected to be disclosed soon. The deal could apparently help the company wipe out its debt.

Evidently, the deal caps months of talk between Duracell and the Khaitan family as well as US-based Energizer, which runs the Eveready brand in the US and China, apart from multiple private equity firms. However, a slump sale does not accredit separate values to the various parts of assets being traded.

Sources with knowledge of the matter said that the Energizer will only run the Eveready brand in India and become owner of an annual installed capacity of about 1.5 billion batteries and more than 20 million flashlights annually. Estimates claim that the businesses will conjointly generate a revenue of nearly INR 900 crore.

It has also come to the fore that the deal excludes Eveready’s electrical appliances, lighting, confectionary, and a fast-moving consumer goods (FMCG) JV that amass a cumulative turnover of around INR 500 to 600 crore.

Reportedly, the deal also excludes Eveready’s non-core real estate including the Kolkata headquarters at Rainey Park. The company’s Kolkata head office along with land in New Delhi and Chennai could fetch an additional INR 200 crore.

The Eveready brand has apparently been trying to sell assets, including tea plantations, in India and overseas to repay lenders. Duracell’s proposed offer could seemingly help the Khaitans save around INR 60-70 crore of interest cost annually and scale up its residual business in the future.  

The company had witnessed a 63% drop in net profit to INR 6.85 crore for the first quarter, which can be mainly attributed to a slowdown across semi-urban and rural markets. Profit during the corresponding year earlier stood at INR 18.35 crore.

 

Source credit: https://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/duracell-wins-battle-of-bunnies-for-eveready/articleshow/71041281.cms

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Hrishikesh Kadam    

Hrishikesh Kadam

A graduate in electronics and telecommunication engineering, Hrishikesh Kadam has always found writing fascinating. Driven by a never-ending passion for content creation combined with a bit of experience in writing personal blogs, Hrishikesh blends his technical knowl...

Read More

More News By Hrishikesh Kadam

Pure Storage takes over Portworx to support Kubernetes & containers
Pure Storage takes over Portworx to support Kubernetes & containers
By Hrishikesh Kadam

Storage as-a-service solutions provider, Pure Storage, has reportedly signed an agreement for the acquisition of leading Kubernetes data services platform, Portworx, for an approximate sum of $370 million. The transaction is reported to be the larges...

MaxLinear purchases intellectual property provider NanoSemi Inc
MaxLinear purchases intellectual property provider NanoSemi Inc
By Hrishikesh Kadam

Leading integrated circuits provider, MaxLinear, Inc., has reportedly announced its takeover of NanoSemi, Inc., the forerunner in the provision of intellectual property, deploying patented machine learning techniques for the enhancement of power effi...

Syncron introduces new solutions to enhance Syncron Service Cloud
Syncron introduces new solutions to enhance Syncron Service Cloud
By Hrishikesh Kadam

Syncron has recently announced two new releases to make significant enhancements to its Syncron Service Cloud. The Syncron Inventory 20.1 and Price 20.2 solutions are designed to assist OEMs (original equipment manufacturers) in enhancing their liqui...