NANOFILM Technologies International : MZH -7.07% has started its venture into the European market with a 6.8 million euro (S$9.9 million) acquisition, the mainboard-listed company announced on Thursday (Dec 21).

 

The target being acquired is a German company called AxynTeC Dü nnschichttechnik, which was founded by physicist Bernd Schey in 1999. 

 

AxynTeC provides coating solutions to industrial and medical industries using its own patented thin-film technologies, according to Nanofilm, which also provides coating services and thin-film coating equipment solutions among its core services.

 

Dr Schey helms AxynTeC with another physicist, Dr Claus Hammerl, who joined the company in 2001.

 

Nanofilm said in a bourse filing that the physicists, who are PhD graduates from the University of Augsburg, will remain with the company under a managing director&rsquo s employment contract each.

 

Dr Shi Xu, founder and executive chairman of Nanofilm, said the investment brings Nanofilm &ldquo one step closer to our vision of becoming a recognised global leader in nanotechnology&rdquo . 

&ldquo Through synergistic acquisitions like the one today with AxynTeC, we can further our goal of developing market-disrupting, cutting-edge nanotechnology solutions for a more sustainable world,&rdquo he added.

 

Elaborating, Nanofilm said the acquisition forms a good nexus for the group to launch its new base of operations in Europe, since AxynTeC has existing European customers in key applications utilised for medtech and non-consumer electronics coating customers.

 

AxynTeC will be a &ldquo great platform&rdquo to launch Nanofilm&rsquo s proprietary coating technology, Filtered Cathodic Vacuum Arc and PVD decorative coatings, for the European market, it pointed out.

 

AxynTeC has a track record in Southern Germany, Austria and Switzerland, Nanofilm noted.

 

Nanofilm also said AxynTeC&rsquo s proprietary &ldquo diamond-like carbon&rdquo equipment and advanced materials are synergistic to Nanofilm&rsquo s physical vapour deposition (PVD) equipment and coating portfolio.

 

Furthermore, AxynTeC&rsquo s ISO certifications, such as ISO 13485 for medical devices, biocompatible coatings and existing facility, will allow for accelerated penetration into the European market, Nanofilm stated.

 

As at Thursday, AxynTeC has a registered share capital of 25,000 euros, which is 100 per cent held by Dr Schey and Dr Hammerl in equal proportion.

 

Based on its unaudited financial statements for the financial period ended Sep 30, 2023, the net tangible asset value and the book value of the sale shares were both about 1.1 million euros, Nanofilm declared.

 

It said the 6.8 million euro purchase price is subject to certain downward adjustment in the event AxynTeC&rsquo s total liabilities to banks exceed a certain agreed threshold. 

 

The acquisition will be funded from internal sources of funds, Nanofilm added.