XMH Holdings to acquire 80% of marine company ZP
It’s a non-binding MOU.
XMH Holdings announced its entry into a non-binding MOU for the proposed acquisition of 80% of Z-Power Automation Pte Ltd (ZP), a marine controls company and OEM for the Niigata brand of engines and propulsion systems.
ZP was set up in May 2008 and specialises in the design and manufacture of marine switchboards, remote control distribution systems and other integrated marine automation products. It is 60%-owned by BH Global (BHGM SP, NR) with the remainder held by four individuals. ZP will introduce the Niigata brand of engines to XMH’s portfolio. Also, XMH stated that ZP’s revenue for FY13 was SGD21.4m, which we find closely corresponds to BH Global’s marine switchboards segment.
The purchase consideration of SGD13.2m will be paid in two tranches – SGD10.56m on completion and SGD2.64m after one year. The four individual vendors will remain with ZP for “3+3 years”.