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Nordic Group buys environmental engineering firm Envipure for S$14.8m
MAINBOARD-LISTED systems integration solutions provider Nordic Group has purchased environmental engineering firm Envipure for S$14.8 million in cash.
This comes after the group's wholly owned subsidiary, Nordic Flow Control, in September entered into a non-binding term sheet with the seller, Sunalps, to acquire all of Envipure shares. The company had said then that it was looking to buy Envipure for S$14 million to S$15.5 million.
In a regulatory filing on Thursday night, Nordic Group said it had on Nov 21 entered into a sale and purchase agreement with the vendor, and that the acquisition was completed on the same day. Accordingly, Envipure has become a wholly-owned subsidiary of the group.
Based on the audited financial statements of Envipure for FY2018, the net tangible assets of Envipure as at Dec 31 was about S$11.1 million.
The consideration was negotiated between the purchaser and the vendor, taking into account that as at Oct 31, Envipure's net tangible assets shall not be less than S$13 million, and that it has cash and cash equivalents of no less than S$8 million.
No independent valuation was conducted for the acquisition, and the deal amount was fully settled in cash, financed through a combination of internally generated funds and bank borrowings, the company said.
Nordic Group previously said that the acquisition will allow it to widen its range of products and services, as well as to penetrate new markets and tap new customers in the semiconductor and environmental engineering sectors.
Shares in Nordic Group closed flat at 27 Singapore cents on Wednesday.