nCoat, Inc. announced that on Friday, June 29, 2007 it completed the acquisition of all the capital stock of MCC, Inc. (Metallic Ceramic Coatings or "MCCI"), doing business in the marketplace under the brand of JET-HOT® Coatings. The transaction closing occurred at nCoat headquarters in North Carolina during a transition and integration meeting of company management. The transaction adds JET-HOT® to other nCoat holdings that include nTech, Inc. and High Performance Coatings, Inc. (HPC).
"This business combination strengthens the market position of both companies in the transaction," said Paul Clayson, CEO of nCoat. "When integrated with our first acquisition, HPC, we expect to see benefits to shareholders for both companies including integration of nCoat nano-formulas into product lines, consolidated expenses, cross selling to each company's different customers, up-selling the world-class products of each company, and establishing the best practices identified in each separate company as standard operating procedure."
MCCI, which does business under its market brand, JET-HOT® Coatings, offers thermal barrier, lubritic and corrosion resistance coating applied on autos and bikes ranging from street rods and dragsters to classics and exotics, snowmobiles and over-the-road trucks. JET-HOT® is a market leader in header coatings applications producing low emissivity and ceramic insulating characteristics, which create thermal barriers on both the interior and exterior surface of headers.
Independent tests, conducted by CarCraft Magazine, have demonstrated temperature reductions on headers of over 300°F with the application of JET-HOT® Sterling coatings. JET-HOT® also produces and applies coatings for improved durability, performance, and appearance of manifolds, side pipes, and valve covers. In accelerated salt-spray tests conducted in accordance with ASTM B117, JET-HOT® corrosion barrier coatings last over 14 times longer than chrome and more than 140 times longer than high-temperature paint, enduring more than 5,000 hours.
JET-HOT® Coatings was founded in 1981 and incorporated in 1983. JET-HOT®'s first products and customers were in military applications on jet-fighter engines and submarine parts subjected to high temperatures, cyclical stress loads and corrosive environments. JET-HOT® supplied proprietary coatings used to protect parts on aircraft-carrier launch systems for the US Navy and armored vehicles for the US Army. Shortly thereafter, JET-HOT® introduced automotive products for performance racing and consumer applications. Racing teams began to use the coatings for safety factors by reducing header-surface temperatures, quick cool down and horsepower enhancements. In the 1990s, JET-HOT® became the only coating company to support racers with contingency-award payouts and continue to do so today.
JET-HOT® continues to innovate new coatings to add to its intellectual property portfolio. Proprietary formulas include proprietary nano-chemistry and micron particulate coatings primarily focused on ceramic/metallic technology innovations. JET-HOT® operates three production factories in Pennsylvania, Mississippi, and Arizona, and has approximately 80 employees. Corporate headquarters for JET-HOT® are located outside of Philadelphia in King of Prussia, Pennsylvania.
A more complete description of the details of the closing may be accessed in the nCoat Current Report on Form 8-K to be filed with the Securities and Exchange Commission on July 6, 2007.