CUMI buys full stake in US company Silicon Carbide
CHENNAI Chennai: Carborundum Universal Limited (CUMI) on Monday entered into a binding share purchase agreement to acquire 100% stake from the existing equity shareholders of Silicon Carbide Products, Inc. USA (SCP) at an enterprise value of $6.66 million (Rs 56 crore notional). CUMI will incorporate a wholly-owned subsidiary in the USA, which will act as the special purpose vehicle (SPV) for this acquisition. The transaction is expected to be completed by the end of October 2024.
SCP, based in Horseheads, NY, USA, specializes in the production of high quality nitride bonded silicon carbide (NBSiC) products. NBSiC ceramics have superior wear and thermal shock resistance. SCP has over three decades of experience in providing customized solutions to customers in the USA and globally. Their product range serves industries such as power generation, mining, material handling/processing, non-ferrous molten metal transfer and petrochemical refineries.
Recognised for its technologically superior firing and forming processes, SCP is a trusted supplier to leading industry players in these regions. CUMI MD Sridharan Rangarajan said, “The acquisition of SCP is in line with CUMI’s strategic expansion plans. SCP is set to close 2023 with sales of $4.2 million with a healthy profit and return profile.” Noting that the expertise and solutions offered by CUMI and SCP complement each other, he said the acquisition will assist CUMI in its global market expansion.
