FORT LAUDERDALE, Fla. – Boat care and maintenance product manufacturer Ocean Bio-Chem, Inc. (Nasdaq: OBCI) has signed a letter of intent to acquire the operating assets of Clear Cote Corp. of St. Petersburg, Fla., it reported in a statement yesterday.
Clear Cote is a 20-year-old privately held manufacturer and distributor of resin and epoxy based products to the marine, automotive and furniture industries.
The transaction is subject to completion of due diligence, finalization of financing arrangements and board ratification, according to the company. The purchase would include trade accounts receivable, fixed assets, and intangibles (trade names, trademarks, formulations etc.). Ocean Bio-Chem would assume certain trade payables, make a cash payment and issue two notes to the seller. Other more specific terms of the transaction were not disclosed at this time.
“Clear Cote’s products are well known, high quality and are a natural adjunct to expand the Starbrite line into epoxies and resins where we have no presence,” said Peter Dornau, chief executive officer of Ocean Bio-Chem. “We share many mutual customers and we can expand their line in the retail markets where we have a major presence and strong relationships and Clear Cote lacks presence. We believe there are significant synergies to be realized by combining our respective customer bases and that Clear Cote’s margins and operating profits can be enhanced under our management.”
Ocean Bio-Chem, Inc. manufactures and markets a line of maintenance and care products for boats, recreational vehicles, automobiles, motorcycles and aircraft, which are sold under the Starbrite name.
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