(Alliance News) - NMCN PLC on Monday said it has agreed to buy Lintott Environmental Technologies Ltd for a price tag of up to GBP3.8 million, subject to a three-year earn out.
Lintott specialises in the design, manufacture and after-care of digitally integrated factory-built, water & wastewater treatment systems and process software integration.
NMCN, a construction engineering company, said it will pay a nominal GBP1 on completion of the transaction, with other more material payments made on achievement of profit targets.
NMCN explained that for a pretax profit of less than GBP1 million achieved, the earn out consideration will be zero. For a pretax profit between GBP1 million and less than GBP3 million over the three years from 2019 to 2021, the earn-out consideration will be actual pretax profit amount achieved. For a pretax profit of GBP3 million or more, the earn out consideration will be capped at GBP3 million.
In 2018, Lintott recorded turnover of GBP8.5 million and a pretax loss of GBP998,140.
In addition a GBP85,340 payment will be made to the former holders of redeemable preference shares, NMCN said. A payment of up to GBP675,638 shall be subject to payment of unpaid invoices issued by Lintott to some third parties.
"The strong cash position we've been able to build in recent years has enabled us to take the next step in broadening our offering to the water sector," said NMCN Chief Executive John Homer.
"We look forward to progressing our product offering combining our own experience with the newly acquired colleagues, skills and expertise to reinforce our market leading position in this sector," added Homer.
NMCN shares were trading 3.7% lower on Monday at 498.00 pence each in London.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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