OFFSHORE & engineering, marine and energy services provider Mencast Holdings has entered into a binding term sheet with Stone Marine Overseas and Langham Industries to acquire Stone Marine Singapore.
Mencast will pay around S$2.5 million minus the aggregate amount of all of Stone Marine's outstanding debt.
Stone Marine is involved in the business of manufacturing and repair of marine propellers, associated stern gear and seals.
"This is strongly synergistic to our business," said Glenndle Sim, chief executive of Mencast. "The Stone Marine Group has more than 100 years of leadership in high performance propeller and sterngear equipment, and this partnership will open up the premium military and naval vessel market to us."
As part of the agreement, Mencast will be granted an exclusive territorial licence to manufacture propellers, associated stern gears and HydroSeals under the "Stone Marine" and "Stone Marine Seals" brands for the Asia-Pacific, excluding China and Korea. In addition, it will be granted a shared territorial licence for the Middle East, China, India, the Netherlands, Pakistan, Russia, Korea and Africa (but excluding South Africa).
Mencast will pay a royalty fee as well as purchase propeller designs from UK-based Langham, which is Stone Marine's parent company.