Latest News | CUMI to Acquire RHODIUS Abrasives; to Enhance Technology and Geographical Access
Get latest articles and stories on Latest News at LatestLY. : Carborundum Universal Ltd (CUMI) on Thursday said its step down wholly owned subsidiary CUMI Abrasives GmbH has entered into a share purchase agreement with RHODIUS Abrasives, Germany at an enterprise value of Euro 55 million (about Rs 464 crore).
Chennai, Feb 3 (PTI): Carborundum Universal Ltd (CUMI) on Thursday said its step down wholly owned subsidiary CUMI Abrasives GmbH has entered into a share purchase agreement with RHODIUS Abrasives, Germany at an enterprise value of Euro 55 million (about Rs 464 crore).
In a statement, the company said the transaction was expected to be completed by end of March 2022.
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"RHODIUS has over seven decades of experience manufacturing high performance grinding and cutting consumables for machining of metal and stones. RHODIUS brings in a vast and innovative product line up with various patented benefits that create unique selling opportunities", CUMI Managing Director, N Ananthaseshan said.
More than 70 per cent of RHODIUS revenue was generated through exports to over 100 countries, he said.
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"We believe that the expertise and portfolio of CUMI and RHODIUS complement each other well and the acquisition will significantly aid CUMI in global market expansion. We are delighted to be working with the RHODIUS team to fulfill our global plans", he said.
According to CUMI Director Finance and Strategy, Sridharan Rangarajan RHODIUS concluded the year 2021 with sales of Euro 62.5 million along with a healthy return profile. RHODIUS is a producer of world's thinnest cutting wheel with extensive innovative capabilities including more cuts per battery charge. The Indian market for Thin wheels was expected to grow fast with the Centre's 'Gati Sakti' programme, he said.
"A CUMI-RHODIUS alliance will be timely to capture these opportunities. We see synergies in assured grain supply, market access in India and Russia, and making CUMI's products available through RHODIUS's distribution network", he said.
RHODIUS Managing partner Bernd Lichter said, "CUMI offers RHODIUS Abrasives a unique platform with important strategic advantages, especially in the areas of depth of product range, raw materials and global distribution. This will elevate RHODIUS's growth strategy to the next level".
Investec was the exclusive financial advisor to CUMI and CapitalMind represented RHODIUS on the transaction, the company said.
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