CUMI to acquire US firm for ₹56 cr. to expand its base

CUMI Managing Director Sridharan Rangarajan says that acquisition of SCP aligns with their strategic expansion plans.

Carborundum Universal Ltd. (CUMI) has entered into a pact with the existing equity shareholders of Silicon Carbide Products, Inc. USA (SCP) to fully acquire it at an enterprise value of ₹56 crore.

CUMI will incorporate a wholly owned subsidiary in USA, which will act as the special purpose vehicle for this acquisition. The transaction is expected to be completed by October 31, the Murugappa group firm said in a statement.

Located in Horseheads, New York, SCP specialises in producing high-quality Nitride Bonded Silicon Carbide (NBSiC) products that have superior wear and thermal shock resistance.

SCP product caters to the needs of power generation, mining, material handling/processing, non-ferrous molten metal transfer and petrochemical refineries.

“Acquisition of SCP aligns with CUMI’s strategic expansion plans. SCP concluded 2023 with sales of $4.2 million,” said CUMI Managing Director Sridharan Rangarajan.

CUMI would leverage SCP’s superior nitriding furnace design, patterning and tooling capabilities to address the Indian market for critical thermal applications majorly in power, steel and mining sectors.

CUMI would tap into SCP’s extensive customer network in Americas to market its products to industries such as glass, super alloys, petrochemicals, non-ferrous and heat treatment.