ASI to Sell Engineered-Stone Division
LOWER PAREL, India — ASI Industries Ltd. announced today that it would sell its engineered stone division to an Indian stone processor/exporter in a cash and debt-assumption deal with a total value upwards of $30 million.
The deal for a full-asset “slump sale” to Marudhar Rocks International Private Limited is subject to the approval of shareholders, lenders and other involved parties. A release from ASI noted that the transaction is target to close by next March.
ASI announed a memorandum of understanding (MoU) between the two companies on June 27.
“The transaction was a bittersweet one for ASI,” stated Deepak Jattia, company CMD. “While we were fully focused on developing the Engineered Stone Division as the next segment of growth, the conclusive benefits from the transaction were reason enough to enter into an agreement with Marudhar Rocks.
“The transaction helps us pare down our debts and become a zero-debt company in the near future.”
The deal includes approxmately $11 million from Marudhar Rocks, which will also take on all responsibilties of debt for the engineered-stone division. The final total will largely offset the $30 million in capital outlay for the construction of a brand-new, fully automated plant using Breton® technology near the city of Jaipur.
Marudhar Rocks will also bring all the employees of the division under its employ.
The sale marks an abrupt change for ASI, which had planned the roll-out of its Artizia brand of quartz surfaces for several years. The company, one of the largest quarriers of limestone and sandstone in India with annual revenues in excess of $35 million for the past six fiscal years, saw engineered stone as a progressive expansion.
ASI recently notified the Bombay Stock Exchange that it began commercial production at the facility on March 23 of this year.
“Going forward, we are committed to building our Kotah stone business, and should there be an opportunity to move into some adjacencies, we will keep the investors informed.”
The above article clarifies and amplifies details reported on June 28.
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