CUMI GmbH, Germany, a step-down subsidiary of M/s Carborundum Universal Limited (CUMI), has signed an Asset Purchase Agreement with the Insolvency Administrator of M/s AWUKO Abrasives Wandmacher and Co. KG, Germany (AWUKO) for the acquisition of AWUKO’s main assets for an estimated purchase price of 6.01 million Euros.
AWUKO’s insolvency proceedings began recently, and CUMI was chosen as the winning bidder in a competitive bidding process for the company’s assets, which include land and buildings, plant and machinery, fixed assets, leased assets, brands and trademarks, patents, technical know-how, and other intangible assets, but not cash or receivables.
Mr N. Ananthaseshan, Managing Director of CUMI said “acquiring the assets of AWUKO fits in well with CUMI’s expansion plans in Europe”.
According to a CUMI announcement, the asset purchase agreement is contingent on the completion of talks with the Works Council about employee right sizing as well as agreements with AWUKO’s lessors/creditors.
The projected purchase price is Euro 6.01 million, minus compensation fees to be agreed upon with the Works Council and additional charges, if any, to be agreed upon with the Insolvency Administrator.
CUMI will get access to 10 million square metres of Coated Abrasives capacity, a global distribution base, and an experienced process and application engineering staff.
CUMI will also be able to provide AWUKO with crucial raw materials from its businesses in India and Russia.
