Kanoria Chemicals & Industries Ltd, a manufacturer of chemical intermediates, has acquired 100 per cent equity stake in Germany-based CoSyst Control Systems GmbH for € 640K (around Rs 4.29 crore or $688,000), as per a stock marker disclosure.
The deal has been routed through Kanoria Chemicals' Switzerland-based arm APAG Holding AG. As per of the transaction, APAG Holding will absorb the loan amounting to €209K, provided by the erstwhile shareholders to CoSyst.
Meanwhile, APAG is also mulling to have a sales organisation for its existing lines of business in North America by incorporating a wholly owned subsidiary either in the US or in Mexico, the company said in the filing to BSE.
CoSyst develops project- and customer-specific products primarily for automotive electronics and it is strategic fit for APAG’s expanding operations. With the acquisition, APAG will augment its operations in Switzerland, Czech Republic and Germany.
Kanoria Chemicals had acquired 90 per cent stake in Switzerland-based APAG Holding AG for CHF 6.39 million ($6.97 million then) in April 2012. Later in 2014, it acquired remaining 10 per cent stake in APAG, making it a wholly-owned subsidiary.
The acquisition of APAG was a part of Kanoria Chemicals’ diversification plan after it divested its chloro-chemicals business in May 2011 to Aditya Birla group.
APAG Holdings, through its subsidiary APAG Elektronik AG, is involved in the development and sale of electronic and mechatronic modules and control devices for the automotive, consumer goods, power tool electronics and building automation industries. Its designing and engineering facility is in Switzerland while the manufacturing facility is located in the Czech Republic.
Kanoria Chemicals is a top player in formaldehyde and hexamine in India while Momentive Specialty is a global leader in thermoset resins with facilities in over 30 countries.
On Wednesday, shares of Kanoria Chemicals closed the day at Rs 41.60, up 1.46 per cent from their previous close on BSE in a strong Mumbai market.
(Edited by Joby Puthuparampil Johnson)