Shapoorji Pallonji Group's arm Eureka Forbes Ltd is acquiring majority stake in Switzerland-based Lux International for an undisclosed amount.
The acquisition would fulfill Shapoorji Pallonji's vision to make Eureka Forbes a global company with a turnover of over $1 billion by 2017. The acquisition will help Eureka Forbes extend its footprint to over 40 countries with 25,000 employees.
Suresh L. Goklaney, who has been with Eureka Forbes for over 26 years, will continue to lead the overall strategic development of the newly formed Eureka Forbes Group as its executive vice chairman, under the guidance of Group chairman Shapoor P. Mistry.
In 2007, Eureka Forbes and Lux International had entered into a 50:50 joint venture to form Forbes Lux for global operations. In 2010, Lux International had sold 25 per cent stake in the company to Eureka Forbes for $25 million.
Founded in 1982, Mumbai-based Eureka Forbes manufactures domestic and industrial water purification systems, vacuum cleaners, air purifiers and security solutions. It is one of the leading direct selling companies in India with a turnover of over $300 million and its flagship brand Aquaguard is one of the world's largest selling water purifier brand.
"We share a close partnership with Lux International and the von der Becke family and have similar values and a long relationship over many years. Thus, both the companies should enjoy significant synergies from this proposed transaction, resulting in the realisation of the ambitious goals that we have set to increase our combined gross turnover from the current $500 million to over $1 billion by 2017," said Mistry.
"Joining forces with Eureka Forbes was a carefully considered decision. Having worked together for close to a decade, it is a tried, tested and trusted relationship. So, we are very positive and full of expectation for the future," said Reinhard von der Becke, chairman, Lux International.
Lux International is a privately owned Swiss family company based in Zug, Switzerland which is led by Reinhard von der Becke and his son Reto von der Becke, president and CEO.
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