Mumbai: Packaged consumer goods company Hindustan Unilever Ltd (HUL) on Monday announced the sale of its water purification business Pureit in India to A. O. Smith Corp.
at an enterprise value of $72 million or ₹ 601 crore. This is part of a larger deal that saw A.O.
Smith purchase the Pureit business in south Asia from HUL parent Unilever for approximately $120 million. Pureit was first launched in Chennai in 2004—it offers a broad range of residential water purification solutions, primarily in India. The acquisition of Pureit is projected to close by the end of 2024.
The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction, the consumer goods major said in a filing with the exchanges Monday. Also Read: HUL ramps up premium beauty business post spin-off In FY24, HUL said the water purification business reported a turnover of ₹ 293 crore, less than 1% of HUL’s turnover in the same period. The water purification business of the company is part of the overall homecare business and its net worth is not separately tracked by the company, HUL said in its filing.
“A. O. Smith India Water Products Pvt.
Ltd is the buyer entity involved in the transaction. It is a subsidiary of A. O.
Smith Corp., USA. 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,” according to H.