Hindustan Unilever Sells Pureit Business to AO Smith for INR 601 Cr Pureit provides a range of water purification solutions across India, Bangladesh, Sri Lanka, Vietnam, and Mexico, among others.
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In a significant move, Hindustan Unilever (HUL) announced the sale of its water purification business under the Pureit brand to AO Smith India Water Products for INR 601 crore (approximately USD 72 million).
"The board of directors, at their meeting held on July 15, 2024, has approved the sale and divestment of the 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 a slump sale basis to AO Smith India Water Products Pvt Ltd," Hindustan Unilever Ltd (HUL) said in a regulatory filing.
The deal is expected to close by the end of 2024 and is not expected to have a material impact on earnings in the first year, A O Smith said in its release.
"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.
Pureit offers a range of water purification solutions across India, Bangladesh, Sri Lanka, Vietnam, and Mexico, among others.
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."
Kevin J Wheeler, AO Smith Chairman and CEO, said, "We believe the addition of Pureit will strengthen our leadership position as a global supplier of premium water treatment products and double our market penetration in South Asia."
"The acquisition will also support our corporate strategy by enhancing our premium product portfolio and distribution capabilities. Pureit's culture of innovation, strong brand recognition, and dedication to customer service will be an excellent addition to our premium brand positioning and broad product portfolio in the region," he added.
