Just a few weeks after it announced plans to acquire a US-based CNG (compressed natural gas) and industrial gas cylinder manufacturer, India's Everest Kanto Cylinders has now revealed further details of the proposed acquisitions.
In a recent notice to the stock exchanges, India’s largest CNG cylinder manufacturer said it had signed an asset purchase agreement with Reunion Industries Inc. to acquire the assets and liabilities of the company's pressure vessels division, housed under CP Industries, for $64.25m.
“At this point we cannot give details on revenues, profitability, or production capacity since we are under the non disclosure period. All I can say is the company is profitable,” a senior Everest Kanto officialis reported to have said.
“CP Industries makes jumbo cylinders and it makes great sense for us to acquire a company which is a global leader in the segment. It must be noted that the acquisition hasn’t done yet and our bid can be topped by other players,” the official added.
According to local media reports, CP Industries has 122 workers on rolls and operates out of a 600,000-square-foot facility.