Murugappa group’s CUMI GmbH, Germany on Tuesday acquired the main assets of AWUKO Abrasives Wandmacher Gmbh & Co. KG (AWUKO), for €8 million.
The step-down wholly-owned subsidiary of Carborundum Universal Ltd, acquired the assets of AWUKO, which is undergoing insolvency proceedings in Germany. CUMI GmbH had executed an Asset Purchase Agreement (APA) with the Insolvency Administrator on December 23, 2021, it said in a regulatory filing.
“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,” said N. Ananthaseshan, MD, CUMI.
“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,” he said.
The acquired assets includes the land & building, plant & machinery, fixed assets, leased assets, brands & trademarks, patents, technical know-how and other intangible assets but excludes cash and receivables after the closing conditions having been met.
The closing conditions included rightsizing of employees in negotiation with the Works Council, procurement of consents from creditors and lessors of AWUKO, release of charges on the real estate property etc.
Earlier, the company had indicated the purchase consideration of euro 6.01 million plus compensation to be agreed with the Works Council and other costs to be agreed with the Insolvency Administrator.
The final purchase consideration at closing is about euro 8 million. Eventually, the subsidiary will be known as CUMI AWUKO Abrasives GmbH.
“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 Sridharan Rangarajan, director - Finance and Strategy, CUMI.
