CUMI GmbH, Germany, a step -down subsidiary of M/s. Carborundum Universal Limited (CUMI) has entered into an Asset Purchase Agreement with the Insolvency Administrator of M/s AWUKO ABRASIVES Wandmacher GmbH & Co. KG, Germany (AWUKO) on 22nd December 2021 for acquiring the main assets of AWUKO. Insolvency proceedings in AWUKO had commenced recently and CUMI has been selected as the successful bidder in a competitive bidding process for the assets of AWUKO which includes land & building, plant & machinery, fixed assets, leased assets, brands & trademarks, patents, technical know-how and other intangible assets but excludes cash and receivables.
The asset purchase deal will be subject to completion of negotiations with the Works Council in connection with rightsizing of employees as well as agreements with the lessors/creditors of AWUKO. 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
Talking about the proposed purchase of assets, N Ananthaseshan, Managing Director of CUMI 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 meters, global distribution base and an experienced process & application engineering team. Significant cross learning is possible as CUMI also operates two Coated Abrasive makers in India. Further, CUMI will be able to provide critical raw materials to AWUKO from its operations in India and Russia.”
Sridharan Rangarajan, Director Finance and Strategy of CUMI said, “AWUKO is a 120-year-old leading 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. With our expertise and experience in turning around the performance of stressed assets we intend to enhance our international offerings in Coated Abrasive products. CUMI will benefit with the access to varied technology and leveraging opportunity for each other’s brands.”