Kanoria Chemicals & Industries Limited (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.
According to the agreement KCI will acquire a 90-per cent stake in APAG Holding AG for Swiss Franc 6.39 million.
KCI, which expects the transaction to be closed in May 2012, will be funding this acquisition out of its internal accruals.
The remaining 10 per cent will be acquired any time 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.
APAG Elektronik AG develops electronic and mechatronic modules and control devices for the automotive, consumer goods, power tool electronics and building automation industries.
Its design and engineering facility is located in Switzerland, with the manufacturing facility in the Czech Republic under the umbrella of a wholly-owned subsidiary APAG Elektronik s.r.o.