Electrical equipment company Indo Asian Fusegear (IAFL), has sold its switchgear business to Legrand, a French company that specializes in electrical and digital building infrastructures. Legrand bought the switchgear division through its wholly owned subsidiary in India for Rs4.95 billion (US$112 million).
J Sagar Associates managing partner Jyoti Sagar, partner Rohitashwa Prasad and associates Nidhi Sahay and Zain Pandit represented IAFL. Amarchand Mangaldas advised Legrand and Ambit Corporate Finance acted as the exclusive investment bankers on the deal.
IAFL is one of the leading manufacturers of switchgears, lighting products, wires and cables in India. Legrand deals in premium wiring devices and value-added protection systems, used primarily for projects such as offices, hotels, shopping centres, healthcare centres and educational institutions.
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“The deal involved coordination with multifarious parties – private contract parties, lenders and government authorities – at locations across India for the transfer of various assets, contracts, and certain licences to ensure seamless closing on time,” Prasad told India Business Law Journal.
As part of the deal, Legrand paid IAFL a non-compete fee of Rs350 million to ensure the latter did not compete with the switchgear business sold to the former for a period of five years. Legrand paid IAFL’s promoters the same amount as part of a similar non-compete agreement. In addition, Legrand gave an IAFL affiliate, Indo Asian Marketing, Rs350 million as payment for the trademarks it inherited having bought IAFL’s switchgear division.
The Legrand group has offices in over 70 countries. Approximately 30% of its sales are in emerging markets.
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