09.02.2022

Luther advises Indian market leader CUMI on acquisition of two abrasives companies in Germany

Cologne – Luther Rechtsanwaltsgesellschaft has advised Carborundum Universal Limited (CUMI), a listed company in India and one of the world's largest suppliers of abrasives, on the acquisition of two well-known German companies in the abrasives sector. The purchase of the business operations of AWUKO Wandmacher GmbH & Co. KG out of insolvency has now been completed, the acquisition of all shares in RHODIUS Schleifmittel GmbH & Co. KG is expected to be closed by end of March 2022 after customary closing conditions have been fulfilled.

The Burgbrohl-based family business Gebrüder RHODIUS GmbH & Co. KG has sold its abrasive tools division with more than 300 employees in Germany and abroad and annual sales of over EUR 60 million in a bidding process to CUMI and will continue to focus on its mineral water business. RHODIUS exports its grinding tools to more than 100 countries and sets industry standards as the manufacturer of extra-thin cut-off wheels. AWUKO, with its over 120 years of history, was acquired by CUMI already in December 2021.

With these two German acquisitions in quick succession, CUMI is strengthening its market presence in Europe and gaining well-known brands with innovative technology. CUMI CEO N. Ananthaseshan emphasises that "the expertise and portfolio of CUMI and RHODIUS complement each other well and the acquisitions will significantly aid CUMI in its global market expansion." RHODIUS Managing Director Bernd Lichter added: "CUMI, with its depth of product range, access to raw materials and global distribution network, offers RHODIUS Abrasives a unique platform with important strategic advantages for the next stage of development."

Luther's cross-location team provided comprehensive legal due diligence, restructuring and transaction advice to CUMI in both transactions.

“The entire Luther team worked tirelessly in scrupulously reviewing the numerous documents and agreements in this marathon race, and provided us with best insight to reach a winning deal with the sellers”, says Sridharan Rangarajan, CUMI’s Director of Strategy and Finance.

About Carborundum Universal Limited (CUMI):

CUMI is part of the Murugappa Group, headquartered in Chennai and one of India's oldest conglomerates which includes over 20 other corporations besides CUMI. Murugappa has a history of over 120 years, is still family-owned and employs over 50,000 people in 19 countries.

On behalf of CUMI:

Luther, Corporate / M&A: Thomas Weidlich (Partner, Lead), Dr Björn Simon (Partner), Dr Johannes Christoph Becker (Counsel), Katja Neumüller (Senior Associate), Falco Rohrberg (Associate), Dr Madeleine Martinek (Associate)

Luther, Real Estate: Michael Kunkel (Partner), Stefan Koch (Senior Associate)

Luther, Environment: Dr Stefan Altenschmidt (Partner), Denise Helling (Senior Associate)

Luther, IP/IT: Dr Detlef Maeder (Partner), Adrian Freidank (Senior Associate), Franziska Neugebauer (Associate), Tobias Schneider (Associate)

Luther, Commercial / Restructuring: Gunnar Müller-Henneberg (Partner), Volker Steimle (Partner), Dr Christoph von Burgsdorff (Partner), Svenja Schwarze (Senior Associate), Franz Kauer (Senior Associate), Payam Madarschahian (Associate)

Luther, Antitrust: Dr Helmut Janssen (Partner), Martin Lawall (Associate)

Luther, Employment Law: Katharina Müller (Partner), Dr Annekatrin Veit (Partner), Dr Sarah Zimmermann (Senior Associate), Christoph Corzelius (Associate), Janina Plückthun, (Associate), Eva Blatt (Associate)

Luther, Capital Markets & Banking / Insurance: Dr Alexander Mönnig (Counsel), Stefan Jokel (Senior Associate), Anna-Sophia Riebeling (Associate)

On behalf of Rhodius:

Oppenhoff, Till Liebau (Partner), Lisa Schmitt (Junior Partner, both Corporate M&A), Marc-Alexander Häger (Partner, Real Estate)

On behalf of AWUKO:

Schwarz & Rühmland Insolvenzverwaltung GbR (Karina Schwarz, Insolvency Administrator)