SINGAPORE (Sept 4): Nordic Group, the systems integration solutions provider, plans to buy Envipure for $14 million to $15.5 million.
In a filing on Wednesday, Nordic said wholly owned subsidiary, Nordic Flow Control, had signed a non-binding term sheet agreement with seller Sunalps, to acquire all the shares in Envipure.
Envipure and its subsidiaries, Envipure and Pollution Control Asia, provide turnkey engineering solutions in process, industrial plant and environmental engineering services, air pollution control, odour abatement, and water and wastewater treatment.
Nordic said the proposed acquisition will help widen its range of products and services as well as break into new markets and tap new customers in the semiconductor and environmental engineering sectors.
If the acquisition is successful, Envipure should provide Nordic with a more stable income stream given Envipure's maintenance contracts which typically last for a year.
For the half year ended June 30, profit attributable to the owners of Envipure before income tax, minority interests and extraordinary items, came in at $0.8 million. As at Dec 31, 2018, Envipure's NTA stood at around $11.1 million.
Nordic will finance the purchase through internal funds and bank borrowings.
The proposed acquisition is subject to the approval of the directors and shareholders of Nordic, Nordic Flow Control and Sunalps.
Nordic warned there is no assurance that the proposed acquisition will be completed.
For the 1Q19 ended March, Nordic reported net profit of $2.06 million, down 40% from a year ago while revenue fell 14% to $19.5 million. As at end March, order book stood at $95.5 million.
As at 11.11am, shares in Nordic Group are up 1.5 cents at 27 cents.
