Freeworld Coatings Global has exercised its option to acquire the North American operations of Napier Environmental Technologies Inc. (www.napiere.com) of Vancouver, Canada, Napier has announced.
Napier will cease manufacturing its product lines, which include prep, coating removal and wood restoration products for the industrial, commercial and retail markets.
The deal’s closing had been delayed by regulatory approvals, which have now been obtained. As a result of this delay, the companies’ so-called NAFTA Option Agreement has been renegotiated to include an additional $1.125 million goodwill payment to Napier.
In addition, Freeworld will pay Napier approximately $605,000 ($55,000 for production machinery and $550,000 for inventory), subject to the actual value of inventory at closing, for a total of about $1.73 million.
Napier has received $602,000 in payment so far; the balance will be paid on July 31, 2009, when the deal is scheduled to close.