Chennai, Dec 23 (PTI) Carborundum Universal Ltd, the Murugappa Group firm on Thursday said its step-down subsidiary in Germany, CUMI GmbH has emerged as the successful bidder to acquire the main assets of the AWUKO Abrasives Wandmacher GmbH and Company, Germany -- a 120 year old leader in leather and wood applications.
CUMI GmbH has entered into an entered into an Asset Purchase Agreement with the Insolvency Administrator of AWUKO Abrasives following the insolvency proceedings in AWUKO which commenced recently. CUMI has been selected as the successful bidder in a competitive bidding process for the assets of AWUKO which includes land and building, plant and machinery, fixed assets, leased assets, brands and trademarks, a company statement said.
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"The estimated purchase price is Euro 6.01 million excluding the compensation cost to be agreed with the Works Council and other costs, if any with the insolvency administrator," the statement said.
"AWUKO is a 120-year old brand in coated abrasives business. AWUKO is a market leader in leather and wood applications with strong presence in metal and lacquer applications. The acquisition is in line with CUMI's aggressive inorganic growth plans", CUMI Director-finance and strategy, Sridharan Rangarajan said.
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The asset purchase deal would be subject to completion of negotiations with the Works Council, the statement said. "Acquiring the assets of AWUKO fits in well with CUMI's expansion plans in Europe. CUMI will gain access to the Coated Abrasives capacity of 10 million square metres, global distribution base and an experienced process and application engineering team", CUMI, managing director, N Ananthaseshan said. "Significant cross learning is possible as CUMI also operates two Coated Abrasive Makers in India. CUMI will be able to provide critical raw materials to AWUKO from its operations in India and Russia", he said. Rangarajan said, "with our expertise and experience in turning around the performance of stressed assets we intend to enhance our international offerings in coated abrasives products."
CUMI would benefit with the access to varied technology and leveraging opportunity for each other's brands, he added.
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