Carborundum Universal Germany arm completes acquisition of main assets of AWUKO

3 Feb 2022 , 11:08 AM

Carborundum Universal Limited step down subsidiary CUMI GmbH, Germany has acquired all the main assets of AWUKO Abrasives Wandmacher Gmbh & Co. KG effective February 1, 2022. The assets acquired include 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 have been met.

The closing conditions included rightsizing of employees in negotiation with the Works Council, procurement of consents from creditors and lessors of AWUKO, the release of charges on the real estate property etc. The purchase consideration indication per our earlier communication dated December 23, 2021 was 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.

Consequent to the acquisition of the assets including the IPR, the name of the subsidiary is proposed to be changed to CUMI AWUKO Abrasives GmbH subject to the completion of formalities as per German laws.

The company in December had informed about the execution of an Asset Purchase Agreement (APA) by CUMI for acquiring the main assets of AWUKO, a company undergoing insolvency proceedings in Germany.

“In this regard, we would like to inform that the acquisition of the assets of AWUKO in terms of the APA has been completed in line with our earlier communication,” company said in a filing on Thursday.

At around 11.10 am, Carborundum Universal Ltd was trading at Rs872.25 per share down by Rs6.35 or 0.72% from its previous closing of Rs878.60 per share on the BSE.