Comptec Industries Ltd. of Vancouver, British Columbia, is getting a blue-light special on its bid for extrusion equipment supplier Actual Maschinenbau AG of Ansfelden, Austria.
Comptec on April 7 said it would buy 62.5 percent of Actual for US$1 million in stock, and infuse $6 million in cash during six months to bolster Actual's operations. The deal also gave Comptec options to buy the other 37.5 percent of Actual for $4.77 million during the next three years.
But after investigating Actual, Comptec now says it will buy the whole company right away, paying only 7 million Austrian schillings (US$556,000) to a third party for use of the trade name in addition to the cash infusion, Comptec President Robert Gardner said in a July 24 telephone interview.
``We need that money to turn it around,'' Gardner said of the $6 million Comptec will be adding to Actual's coffers.
Actual, which specializes in extrusion tooling and turnkey window-fabrication facilities, has been struggling. Austria granted the company a six-month, 15 million schilling (US$1.3 million) rescue loan in February 1997. The European Commission approved the initial loan, but balked when the Austrian government granted an extension.
In a July 1 ruling, the commission demanded that Actual repay the loan, claiming the money gave Actual an unfair advantage over other competitors.
While Gardner said the EC actions were a minor factor in the reduced cost of acquiring Actual, ``they were not the determinant consideration.''
By infusing money into Actual, and getting 100 percent control of the company immediately, Comptec is boosting relations with Actual's creditors, Gardner said.
``The bank [is] happy we're putting that money in, and we're happy because we can get better terms on Actual's debt,'' he said. ``It's a win-win opportunity.''
Comptec already owns 55 percent of Actual's major rival, Technoplast Kunststofftechnik GmbH of Micheldorf, Austria, which it acquired in 1997.
Now Comptec will concentrate on each company's specialties in combining their operations.
``We will emphasize the strength of Actual, which is window fabrication machinery, and the strength of Technoplast, which is in downstream extrusion equipment,'' he said. ``We will combine both companies' knowledge of tooling.''
Comptec is traded on the Vancouver Stock Exchange. It operates a PVC window extrusion plant in Parksville, British Columbia, and injection molding plants in Surrey, British Columbia, and Custer, Wash.