Future Mobility Solutions plans $1.5 mln acquisition of Lancer Industries
By Sophie Boot
July 24 (BusinessDesk) - Future Mobility Solutions, the company formerly known as SeaLegs, plans to buy Lancer Industries for $1.5 million in cash and shares as it attempts to become more competitive in the oil barge sector.
Lancer has a range of own-branded products mainly used in marine commercial applications, with its oil recovery barge in use in over 70 countries and it is also an original equipment (OEM) manufacturer of inflatable fendering solutions, boats and other related products for the high-end retail, superyacht and commercial marine sectors, FMS said.
The purchase would be made with $400,000 in cash and $1.1 million in new FMS shares priced at 27 cents apiece. That's almost double the last trading price of 15 cents. It warned shareholders the transaction is still subject to a number of conditions, but intends it to be completed by Sept. 30.
"In making the acquisition, the company believes Lancer enhances and diversifies its existing businesses through Lancer's expertise and track record in the oil barge industry," FMS said. "It is the board's belief that the acquisition of Lancer will strengthen the ability of the FMS Group to compete for business in this important marine sector.
"It also helps to grow and diversify the group's customer base in the multi-national and government oil sectors. The acquisition of Lancer will also supplement the FMS Group's presence in the RIB sector and represents an opportunity to further develop co-operation across the group's various brands."
Last month, FMS announced it plans to delist from the NZX, saying the market is too small, with chairman Eric Series and acting chief executive Mark Broadley telling shareholders they would also seek their approval for de-listing "in due course."