By KYIV. Jan 3 (Interfax-Ukraine) – Danish pump manufacturer Grundfos has reported the signing of an agreement with the management of its Russian branch to sell two of its subsidiaries in Russia, the company said.
The deal enables the new owners to run a business, which is not linked to Grundfos, in Russia and Belarus. The Grundfos brand and other Grundfos intellectual property rights are not a part of the deal and will remain fully owned by Grundfos.
The agreement is subject to approval by the relevant authorities in Russia, Denmark and the European Union. The approval process for the deal will be completed by the end of the first quarter of 2023, Grundfos said.
Grundfos halted its operations in Russia in early March and reported the shutdown of its business in Russia and Belarus in August. Grundfos said it was in talks with the Russian management to put a number of Russian companies under its management and restructure its Russian business. The associated one-time expenditures were estimated at 851 million Danish kroner (more than $113.5 million).
A Grundfos representative office in Russia was opened in 1992 and in 2005 the plant Grundfos Istra in the Moscow region was put into operation producing equipment (vertical, centrifugal and cantilever monoblock pumps with variable speed drives, pumps for waste water disposal, dosing stations, pressure boosting and fire-fighting units and control systems).
