Kanoria Chemicals & Industries (KCI) has entered into a share and loan purchase agreement to acquire APAG Holding AG, the Switzerland based holding company of its wholly owned subsidiary APAG Elektronik AG, Switzerland. As per the terms of the agreement, KCI will acquire 90% stake in APAG Holding AG on closure of the transaction for a purchase consideration of CHF 6.39 million. The balance 10% stake will be acquired by 2014 on the basis of a pre-fixed pricing formula. As a part of the transaction, KCI will also take over the loan amounting to CHF 1.30 million provided by the selling shareholders to the group.
The transaction is expected to be closed in May 2012 and is subject to customary closing conditions. KCI will be funding this transaction out of its internal accruals. Avendus Capital acted as the exclusive strategic and financial advisor to KCI.
APAG Elektronik AG is engaged in development and sale of electronic and mechatronic modules and control devices for the automotive, consumer goods, power tool electronics and building automation industries. The designing and engineering facility of the company is located in Switzerland, whereas the manufacturing facility is located in the Czech Republic under the umbrella of a wholly owned subsidiary APAG Elektronik s.r.o.
Kanoria Chemicals & Industries is engaged in the manufacture and sale of chemical intermediates in India. It offers chlor-alkalis, chlorine derivatives, and water treatment chemicals, as well as alcohol-based intermediates.
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