United Engineering co-founder Charlie Bontempo has made a move back into industrial services through listed company Fermiscan Holdings, which has announced a deal to acquire a construction and maintenance labour hire firm for $3.4 million.
Fermiscan said its subsidiary, Tempo Industry Partners, had entered conditional agreement for the acquisition today.
The transaction remains subject to shareholder approval.
Fermiscan also announced a proposal to change its name to Tempo Australia, to reflect its change in business.
Its previous focus was on the development of early detection technologies for breast cancer.
“In the current environment we have the ideal opportunity to grow the seller’s business and this will complement future acquisitions,” managing director Dick Wright said.
The takeover target, which Fermiscan did not disclose, has forecast full year revenue of $11 million for financial year 2012, with an EBIT of $1.2 million.
The purchase price is made up of $3 million in cash and $400,000 in shares.
Fermiscan said it would launch a capital raising by way of placement to raise up to $1 million, to partially fund the acquisition.
Mr Bontemp and Mr Wright joined Fermiscan's board in Augsut last year.
Mr Bontempo was one of four founders of United Engineering, which later became United Group and now trades as UGL, based in Sydney.
Mr Wright's past experience includes with Hancock Prospecting, Decmil and Fluor.