Everest Kanto Cylinder (EKC) has signed an asset purchase agreement with US-based Reunion Industries Inc to buy assets and liabilities of its pressure vessels division, CP Industries, for $64.25 million (approximately Rs 259 crore) in cash, subject to adjustment, bankruptcy court proceedings and regulatory approvals.
According to a release issued by EKC to the BSE today, the assets will be acquired by a subsidiary of the company. ICICI Securities was the sole advisor to EKC for the transaction.
"CP Industries, located in McKeesport, Pittsburgh, USA, manufactures and sells large seamless pressure vessels for containment and transportation of pressurised gases, and is a global leader in the business. After consummating this transaction, EKC intends to operate and grow this business at its present facility," the release added.
Prem Khurana, chairman and managing director, Everest Kanto, said: "This acquisition will enable EKC to capialise the robust global demand for specialty and CNG gas storage systems across various countries."
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