Craftsman Automation Revises German Acquisition Terms for Strategic Expansion

Craftsman Automation Ltd has announced an update regarding its acquisition plans in Germany. This follows their previous disclosure on July 23, 2024, in compliance with Regulation 30 of the SEBI Listing Regulations.

On July 22, 2024, the company’s German subsidiary, German Sub, executed an Asset Sale and Purchase Agreement (APA) with Fronberg Guss GmbH. This agreement pertains to the acquisition of certain strategic assets located in Germany. Additionally, German Holdco, another subsidiary, entered into a Share Sale and Purchase Agreement (SPA) with Gienanth GmbH for the complete acquisition of 100% of the share capital of Fronberg Guss Immobilien GmbH, also known as the SPA Target.

The Craftsman Automation Ltd Board of Directors, in their meeting on July 24, 2024, acknowledged the execution of both the APA and SPA. These developments were promptly communicated to the stock exchanges on the same day.

However, it has now been reported that amendments have been made to both the APA and SPA agreements. These changes, which include revisions to the purchase price and other commercial terms, were agreed upon by the involved parties. The primary objective of these acquisitions is to enhance Craftsman Automation Ltd’s business operations and market presence within Europe, particularly in Germany.

The acquisition requires approval from the German Federal Ministry for Economic Affairs and Energy for Foreign Direct Investment (FDI) clearance. The indicative timeline for completing the acquisition is on or before October 31, 2024. The total cost of the acquisition is set at EUR 3.6 million.

The APA Target, Fronberg Guss GmbH, operates a foundry in Schwandorf-Fronberg and manufactures products primarily for the automotive and industrial sectors. The APA Target’s financial performance over the past three years is in CY23, it had a turnover of EUR 25,710,000, CY22 recorded EUR 25,560,000, and CY21 reported EUR 23,220,000.

On August 16, 2024, the share price of Craftsman Automation opened at ₹5,395.00, touching the day’s high at ₹5,524.40, as of 9:52 AM on the NSE.

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