The proposed acquisition aims to accelerate the group’s business expansion in Europe
NANOFILM Technologies’ wholly owned subsidiary, Nanofilm AM Germany, is acquiring two German companies for 3.1 million euros (S$4.3 million).
The nanotechnology solutions provider said on Wednesday (Feb 12) that it had entered into a sale and purchase agreement on Tuesday with Burkhard Scholz, to acquire all shares in EC Europ Coating and MC Europ Coating.
The proposed acquisition aims to accelerate the group’s business expansion in Europe by capitalising on both companies’ established customer base and presence in the continent, as well as expertise in decorative coatings.
The addition of both companies to the group “provides a strong platform to scale and extend the company’s suite of nanotechnological solutions in Europe”, said Nanofilm.
EC Coating and MC Coating provide thin film coatings for decorative and functional applications, such as watches and jewellery, medical instruments and eyewear.
They mainly serve the luxury, high-end decorative industry, as well as other consumer and medical markets in Europe.
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Scholz is the managing director of both companies. After the acquisition is completed, he will continue in his role under a 12-month employment contract, said Nanofilm.
It noted that the purchase consideration includes an earn-out consideration of up to 1.2 million euros, which is expected to be paid in the second half of this year. This is conditional upon both companies “meeting certain financial performance targets” for FY2024.
The acquisition will be funded from internal sources of funds. It is not expected to have any material impact on the net tangible assets per share and earnings per share of the group for FY2024.
Shares of Nanofilm closed S$0.025 or 3.6 per cent higher at S$0.72 on Wednesday.
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