- Titomic (TTT) is set to acquire European cold spray technology company, Dycomet Europe B.V.
- All shares in Dycomet will be acquired through a cash consideration of €1.3 million (around A$2.07 million), while the vendors will be issued 1.5 million ordinary shares in Titomic
- The transaction is hoped to offer Titomic a base in Europe, giving it global access, together with its Australian Headquarters and Titomic USA
- Titomic says the acquisition will be immediately revenue accretive, with a healthy pipeline of customer orders in Europe
- Titomic shares are in the grey, trading at 23.5 cents at 10:42 am AEDT
Titomic (TTT) is set to acquire a European cold spray technology company, Dycomet Europe B.V.
Dycomet is a Dutch firm that provides low to high-pressure cold spray technology solutions to companies such as Rolls-Royce, Mercedes, Siemens, and Volkswagen.
Titomic will acquire all issued shares in Dycomet through a cash consideration of €1.3 million (around A$2.07 million), with €1 million (roughly A$1.5 million) being paid on completion and two equal deferred payments of €0.15m (A$0.24 million) to be paid 18 months and 36 months after completion.
Additionally, the vendors will be issued 1.5 million ordinary shares in Titomic in three equal tranches on the first, second and third anniversaries of completion.
The transaction is hoped to offer Titomic a base in Europe, giving it global access, together with its Australian Headquarters and Titomic USA.
Herbert Koeck, Chief Executive of Titomic, said the acquisition of Dycomet marks a significant step in Titomic’s pathway to being a global company.
“While Titomic focuses on high-pressure applications, Dycomet services the soft-end low and medium-pressure market,” Mr Koeck said.
“With our complementary machinery and product portfolio, the combined expertise now available to the Company will further accelerate the company’s growth into new markets and provide current customers with a broader product offering.”
As part of the agreement, Dycomet’s founder and Chief Executive, Klaas Rozema, will step into the new role of General Manager of Titomic Europe.
Titomic said the acquisition will be immediately revenue accretive, with a healthy pipeline of customer orders in Europe, with the company forecasting additional annual revenue of €1 million (roughly A$1.5 million).
Titomic shares are in the grey, trading at 23.5 cents at 10:42 am AEDT.