Hindustan Unilever to sell Pureit business to A.O. Smith for Rs 601 crore

The proposed transaction is to be undertaken by way of a slump sale through a business transfer agreement between the company and A.O. Smith India Water Products Pvt Ltd.

Hindustan Unilever to sell Pureit business to A.O. Smith for `601 cr

The “water purification business” proposed to be transferred does not meet the threshold limits of “undertaking” in terms of Section 180(1)(a) of the Companies Act, 2013, HUL said.

Hindustan Unilever Limited (HUL) has signed an agreement for the sale of its water purification business, Pureit, to A.O. Smith, a leading global water technology company based in the US, for an enterprise value of $ 72 million (Rs 601 crore).

The proposed transaction is to be undertaken by way of a slump sale through a business transfer agreement between the company and A.O. Smith India Water Products Pvt Ltd. Further, the “water purification business” proposed to be transferred does not meet the threshold limits of “undertaking” in terms of Section 180(1)(a) of the Companies Act, 2013, HUL said.

A.O. Smith India Water Products is a subsidiary of A. O. Smith Corporation, the US.

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HUL MD and CEO Rohit Jawa said: “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.”

Parag Kulkarni, president of A.O. Smith India Water Products said: “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.”

“The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction,” HUL said.

The turnover of the water purification business proposed to be sold is Rs 293 crore (less than one per cent of HUL’s turnover). The water purification business of the company is part of the overall home care business and its net worth is not separately tracked by the company.

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