Australian-Singaporean water and wastewater treatment company De.mem is paying $5.1 million to acquire a chemicals supplier in Perth.
De.mem announced the deal with Canning Vale-based Capic this morning, saying it would bring the company's services to the Western Australian mining sector.
Headquartered in West Perth, De.mem supplies and operates water and wastewater treatment systems for companies in the mining, electronics, chemical, oil and gas, and food and beverage sectors.
Its systems also provide municipalities, residential developments, and hotels and resorts across the Asia Pacific with a reliable supply of clean drinking water.
De.mem said the Capic acquisition would bring with it notable WA mining clients such as BHP Billiton, Northern Star Resources, Pilbara Minerals and Iluka Resources.
Capic's specialty chemical products include scale and corrosion inhibitors, process additives and cooling water tower treatment chemicals.
Under the deal, De.mem will pay $3.7 million in cash and issue $1.4 million in shares to Capic. That excludes future potential milestone payments totaling $750,000.
Upon completion, Capic founder and chief executive Albert Vinciguerra will become managing director of De.mem's new subsidiary.
The company also owns Pumptech Tasmania and Germany's Geutec, acquired in 2019 for about $1 million and $915,000, respectively.
The Capic deal is subject to a number of requirements including the completion of commercial and legal due diligence, as well as final approval of the De.mem board.
De.mem requested a trading halt yesterday, which is expected to lift on March 17.
