- With a definitive agreement now in place, De.mem (DEM) is moving ahead with its acquisition of Perth-based specialty chemicals supplier Capic
- De.mem will pay a maximum of $5.1 million for the acquisition, which consists of both a base consideration and potential milestone payments
- The company has successfully tapped institutions for $9 million and launched a share purchase plan to raise an extra $1.2 million to fund the acquisition
- Today’s definitive agreement comes well ahead of the three-month deadline the two companies had to finalise negotiations
- De.mem is down 7.94 per cent to $0.29 per share
With a definitive agreement now in place, De.mem (DEM) is moving ahead with its acquisition of Perth-based specialty chemicals supplier Capic.
Thanks partly to a number of existing clients, including BHP Billiton, Northern Star, Pilbara Minerals and Iluka Resources, the buyout of Capic’s business is expected to provide De.mem with increased scale and geographic diversification, a complimentary product range and customer base, and a variety of potential cross-selling synergies.
According to a preliminary agreement announced earlier this week, De.mem will fork out up to $5.1 million for the purchase, which will consist of a base consideration and potential milestone payments.
The base consideration of $4.4 million will, in turn, consist of roughly $3.4 million in cash and $1 million in De.mem shares, while the future payments will consist of three revenue-based packages of $250,000, made up of equal parts cash and shares.
De.mem also successfully tapped institutional investors for around $9 million earlier this week to fund the buyout and launched a share purchase plan to raise a further $1.2 million.
“De.mem is uniquely positioned to realise our vision of becoming the Australian ‘international champion’ providing the complete ‘one-stop shop’ of decentralised industrial water treatment solutions,” said Andreas Kroell, CEO of De.mem.
Today’s definitive agreement comes well ahead of the three-month deadline De.mem and Capic had to finalise negotiations. However, full completion of the acquisition remains subject to the finalisation of due diligence and the transfer of all material assets and contracts held by Capic.
De.mem is down 7.94 per cent to $0.29 per share at 1:15pm AEDT.