CHENNAI: Carborundum Universal Limited (CUMI) has entered into a binding Share Purchase Agreement to acquire a 100% stake from existing equity shareholders of Silicon Carbide Products, Inc USA (SCP) on Monday at an Enterprise Value of $6.66 million (Rs 56 cr indicative).

CUMI will incorporate a wholly-owned subsidiary in 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, located in Horseheads, NY, USA, specialises in producing 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 their technically superior firing and forming processes, SCP is a trusted supplier to leading industry players in these sectors. Sridharan Rangarajan, MD, CUMI said, “Acquisition of SCP aligns with CUMI’s strategic expansion plans. SCP concluded 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 well, he said the acquisition will aid CUMI in its global market expansion.