Hindustan Unilever Sells Pureit Water Purification Business to AO Smith for USD 72 Million

Hindustan Unilever Ltd has sold its Pureit water purification business to AO Smith India Water Products for USD 72 million. The sale includes trademarks, copyrights, and related assets. This strategic move aligns with HUL's focus on core categories. AO Smith aims to enhance its market position with this acquisition.

Hindustan Unilever Ltd. (HUL) has announced the sale of its water purification business under the Pureit brand to AO Smith India Water Products for USD 72 million (approximately Rs 600 crore). The move is part of a global transaction by HUL's parent company, Unilever.

Globally, Unilever has agreed to sell its water purification business, Pureit, to AO Smith, a leading global water technology company. Pureit offers various water purification solutions across multiple regions including India, Bangladesh, Sri Lanka, Vietnam, and Mexico.

HUL's board approved the sale and divestment of Pureit, including trademarks, copyrights, and other intellectual properties, on July 15, 2024. The sale is conducted as a going concern on a slump sale basis.

According to HUL, the enterprise value of USD 72 million is subject to permissible adjustments. The water purification business had a turnover of Rs 293 crore in 2023-24, less than 1% of HUL's overall turnover.

HUL CEO and Managing Director Rohit Jawa noted that the move aligns with the company's strategic focus on core categories. He expressed confidence that AO Smith's acquisition would allow the Pureit brand to thrive further.

Parag Kulkarni, President of AO Smith India Water Products, said that Pureit's brand recognition and customer service dedication would complement AO Smith's geographic and channel presence in India.

Unilever's President Home Care, Eduardo Campanella, described the sale as a milestone in evolving the company's portfolio towards higher-growth spaces in line with their Growth Action Plan. AO Smith's Chairman and CEO Kevin J Wheeler emphasized that the acquisition would strengthen their leadership position and double market penetration in South Asia.

The transaction remains subject to customary closing conditions. Until its completion, HUL will continue to manage the Pureit business.

(With inputs from agencies.)