CUMI Abrasives GmbH, Germany,(CAG) a step down wholly owned subsidiary of the Carborundum Universal Ltd. (CUMI), has announced the buyout of two entities in Germany for an enterprise value of ₹464 crore and ₹68 crore respectively.
On Wednesday, CAG entered into a share purchase agreement with RHODIUS Abrasives, Germany (RHODIUS) to buy 100% stake for an enterprise value of ₹464 crore to enhance technology and geographical access.
RHODIUS is one of the producers of the world’s thinnest cutting wheel with extensive innovative capabilities including more cuts per battery charge. It has four subsidiaries in Spain, Czech Republic, Poland and Slovakia.
N. Ananthaseshan, MD, CUMI said: “RHODIUS has over seven decades of experience manufacturing high-performance grinding and cutting consumables for machining of metal and stones. More than 70% of its revenue is generated through exports to over 100 countries.”
Sridharan Rangarajan, director finance and strategy of CUMI said: “Acquisition of RHODIUS along with just concluded AWUKO Abrasives asset purchase aligns with CUMI’s strategic expansion plans. RHODIUS concluded 2021 with a sales of €62.5 million along with a healthy return profile.”
Earlier, in the day, CUMI announced buy out of main assets of AWUKO Abrasives Wandmacher Gmbh & Co. KG (AWUKO), for €8 million. Currently, AWUKO is undergoing insolvency proceedings in Germany.
“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,” said Mr. Rangarajan.
Published - February 03, 2022 10:31 pm IST
