Sylvania light unit goes to Havell146;s

Electrical products maker Havell8217;s India said it will acquire SLI Sylvania8217;s lighting business for 300 million, hoping to boost its international revenue. The all-cash buy would be done through Havell8217;s Dutch unit and create a combined entity with an annual revenue of 1 billion, the Indian company said on Tuesday.

8220;The management team of SLI Sylvania will continue to remain with the business and growth of the combined organisation,8221; Qimat Rai Gupta, Havell8217;s CMD said. The buyout would enable it derive two-thirds of its revenue from the international market, he added.

The news drove Havell8217;s shares up 5.6 per cent to Rs 470.80 in the Mumbai market. SLI Sylvania, which has well-known lighting brands such as Sylvania, Marlin, Claude and Lumiance, reported a revenue of 594 million in 2006.

The acquisition would be financed by non-recourse debt of 160 million and recourse funding of 105 million through Havell8217;s subsidiaries, the acquirer said.