Crompton Greaves Consumer Electronics (Crompton) is acquiring Chennai-based Butterfly Gandhimathi Appliances Ltd (Butterfly) for a total consideration of Rs 2,076.62 crore.

The company signed definitive agreements on Tuesday with certain members of the promoter group of Butterfly to acquire up to 55 per cent stake at Rs 1,403 per share, aggregating up to Rs 1,379.68 crore, and certain Butterfly trademarks from promoter group entities for Rs 30.38 crore.

In line with Sebi rules, Crompton will also launch a mandatory open offer for the public shareholders of Butterfly to buy up to 26 per cent in the company at Rs 1,433.90 per share, which translates into Rs 666.57 crore.

Butterfly is present in the kitchen and small domestic appliances segment and its product portfolio includes mixer grinders, table top wet grinders, pressure cookers, stainless steel vacuum flasks, LPG stoves and non-stick cookware.

The company is among the top three pan-India kitchen and small domestic appliances players. In South India, it holds the top position in the table top wet grinders and LPG stoves segment and the second position in mixer grinders.

For the year ended March 31, 2021, the company reported revenues of Rs 870 crore against Rs 806 crore for the nine month period ending December 31, 2021. According to Crompton, the transaction will accelerate its long-term strategic goal of becoming a leading player in the small domestic appliances segment.

“Crompton has laid out the road map to extend the core product portfolio. A key step in this road map is to strengthen the small domestic appliances category,” Shantanu Khosla, managing director —Crompton.