“The acquisition of MCCI/ Jet-Hot, combined with High Performance Coatings, Inc. (HPC), our first acquisition in 2005, doubles our size and creates a highly competitive force in automotive, trucking and aerospace coatings,” said Paul Clayson, CEO of nCoat. “We can now add nano-coatings to the product mix of MCCI/Jet-Hot and cross sell the best products of both companies.”
nCoat signed a stock purchase agreement to buy all capital stock in MCCI for $5 million cash and $1 million in nCoat common stock, or roughly one times projected 2007 revenue.
MCCI/Jet-Hot, headquartered in Philadelphia, PA, develops, produces and applies a variety of high performance coatings products that include insulation, corrosion resistance, and abrasion and impact resistance, as well as lubricity properties. All coatings are applied at one of three regional production facilities located in Pennsylvania, Mississippi and Arizona.
Jet-Hot Coatings first launched operations in the military aerospace industry on jet-fighter engines and submarine parts subjected to high temperatures, cyclical stress loads and corrosive environments. Early applications included protecting parts on aircraft-carrier launch systems for the U.S. Navy and armored vehicles for the U.S. Army. Within five years, products were released to the automotive aftermarket. Jet-Hot’s intellectual property base includes a popular Sterling formula, which includes silver powder.
MCCI sells Jet-Hot products in multiple industries including performance motorsports, automotive and over-the-road trucking, motorcycles, and recreational vehicles. Approximately 60% of MCCI/Jet-Hot’s $5.5 million annual revenue is generated in aftermarket high performance coatings applications.