| Thu 20 Mar 2008, 7:00 | | FWD - Freeworld Coatings - Acquisition of The Intellectual Property of |
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FWD
FWD
FWD - Freeworld Coatings - Acquisition of The Intellectual Property of
Napier Environmental Technologies Inc.
Freeworld Coatings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2007/021624/06)
Share code: FWD & ISIN: ZAE000109450
("Freeworld" or "the Company")
ACQUISITION OF THE INTELLECTUAL PROPERTY OF NAPIER ENVIRONMENTAL TECHNOLOGIES
INC.
Freeworld has agreed to buy the worldwide rights outside of North America
(Canada, USA and Mexico) to the intellectual property of Napier Environmental
Technologies Inc. ("Napier"), a provider of coating removal and wood restoration
products using environmentally advanced technology. The agreed purchase price is
CAN$ 5.25 million cash (about R42 million).
The acquisition price includes an option for one year to acquire the North
American sales (excluding those to one large mass market retailer), marketing
and manufacturing operations of Napier at the net book value which is currently
about CAN$ 550,000 (about R4.4 million). Should Freeworld not take up the
option, Napier will refund Freeworld CAN$ 100,000.
This acquisition is in accordance with the Company`s strategy to expand its
complementary offerings. It consolidates Freeworld`s market leading position in
the South African coatings sector and will allow further expansion of the
Company`s footprint abroad in accordance with the Company`s plans to grow its
international presence. Freeworld is expected to take advantage of its
established effective distribution structure in marketing the range of products
successfully and will look also for new avenues abroad.
Napier produces innovative de-coating and wood restoration products including
paint strippers, cleaners, wood restoration, varnishes and etchers. The
products are environmentally friendly using advanced technologies and thus in
accordance with Freeworld`s ethos to arrive at a "greenhouse neutral"
environmental policy.
Freeworld has facilities on hand in South Africa to manufacture the range of
products. In due course, the Company also plans to manufacture the products in
Australia. The business will fit within the performance coatings segment of the
group.
Freeworld anticipates payback on the acquisition from South African sales within
five years.
Andre Lamprecht, CEO of Freeworld said:
"This is an exciting opportunity and this acquisition furthers our intention of
building on the essence of our brand, which reflects our vision of becoming an
even stronger international force within the coatings industry and a world-class
multinational Company that is commercially, socially and environmentally
responsible."
20 March 2008
ENQUIRIES:
Freeworld Coatings Limited 011 301 4645
Andre Lamprecht
College Hill 011 447 3030
Nicholas Williams 083 607 0761
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 20/03/2008 07:00:05 Produced by the JSE SENS Department.
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