HUL to sell water purification business Pureit to AO Smith for Rs 600 cr
AO Smith India Water Products will buy the business as part of a global transaction from HUL's parent Unilever
Hindustan Unilever Ltd on Monday (July 15) announced the sale of its water purification business under the Pureit brand to AO Smith India Water Products for $72 million (about Rs 600 crore) as part of a global transaction by its parent Unilever.
Globally, Unilever said it has agreed to sell its water purification business Pureit to AO Smith, a leading global water technology company. Pureit offers a range of water purification solutions across India, Bangladesh, Sri Lanka, Vietnam and Mexico, among others.
"The board of directors at their meeting held on July 15, 2024, has approved the sale and divestment of company's water purification business carried under the brand 'Pureit', including the trademarks, copyrights and other intellectual properties and identified assets and contracts associated with the business, as a going concern on slump sale basis to AO Smith India Water Products Pvt Ltd," Hindustan Unilever Ltd (HUL) said in a regulatory filing.
Homecare business
On the consideration received from the sale, HUL said it is being carried out at an enterprise value of $72 million (about Rs 600 crore), subject to permissible adjustments as per the transaction.
In 2023-24, the turnover of the water purification business proposed to be sold was Rs 293 crore, less than 1 per cent of HUL's turnover, it added.
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, HUL 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 AO Smith," HUL CEO and Managing Director Rohit Jawa said.
Future synergies
On the acquisition, AO Smith India Water Products President Parag Kulkarni said: "The Pureit brand, known for innovative water purification products, strong brand recognition and dedication to customer service, complements AO Smith's geographic and channel presence".
The Pureit team's understanding of consumer needs and water treatment expertise adds tremendous strength to AO Smith in India, he added.
The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction, the filing said.
