Carborundum Universal Limited to Acquire US-Based Silicon Carbide Products for USD 6.66 Million

On September 16, 2024, Carborundum Universal Limited (CUMI) signed a Share Purchase Agreement to acquire a 100% stake in Silicon Carbide Products, Inc. (SCP), USA, for an enterprise value of USD 6.66 million (around INR 56 crore). 

To facilitate this acquisition, CUMI will set up a wholly-owned subsidiary in the USA, which will act as a Special Purpose Vehicle (SPV). The deal is expected to close by the end of October 2024.

SCP, based in Horseheads, New York, specialises in making high-quality Nitride Bonded Silicon Carbide (NBSiC) products. These ceramics are known for their excellent resistance to wear and thermal shock. With over 30 years of experience, SCP provides tailored solutions to industries such as power generation, mining, material handling, non-ferrous molten metal transfer, and petrochemical refineries. The company is well-regarded for its advanced firing and forming techniques, serving major players in these sectors.

Mr Sridharan Rangarajan, managing director of CUMI, said, “The acquisition of SCP aligns with CUMI’s strategic expansion plans. SCP concluded 2023 with sales of USD 4.2 million with a healthy profit and return profile. 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.”

He further added, “CUMI would tap into SCP’s extensive customer network in the Americas to market its products to industries such as glass, super alloys, petrochemicals, non-ferrous and heat treatment. Additional synergies are expected out of opportunities to supply CUMI’s grade of raw materials to SCP and in joint development of products and technologies. We believe that the expertise and solutions offered by CUMI and SCP complement each other well, and the acquisition will aid CUMI in its global market expansion. We are delighted to be working with the SCP team to fulfil our global plans.” 

About Carborundum Universal Limited

Carborundum Universal (CUMI), founded in 1954 as a joint venture, is a top provider of engineering solutions in material sciences. As a fully integrated “Mines to Market” company, CUMI’s operations cover mining, power generation, manufacturing, and distribution. With over 5,000 employees globally, CUMI delivers high-quality material solutions and services in areas like abrasives, electrominerals, ceramics, refractories, and energy storage materials. 

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