LOCAL protective coating company Novacoat Holdings, which recently listed on the Australian Stock Exchange, has reached a binding agreement to acquire the business assets of Sydney-based engineering, construction and maintenance group McFee Holdings. Novacoat will acquire all McFee’s plant and equipment, trading names, the McFee total system management software system and all McFee’s existing and pending contracts. The acquisition is a combination of cash and scrip with the initial payment of $250,000 and 12 monthly payments of $150,000 each as well as 666,666 fully paid ordinary Novacoat shares and 500,000 unlisted options. McFee, which specialises in structural, mechanical and piping services to the resources and energy processing industries, has lengthy working relationships with BHP Billiton, Hamersley Iron, Comalco. The investment represents a low risk, says Novacoat, as McFee turned over approximately $3.4 million, with a small profit of $135,000 for the 2003-2004 financial year.
