Smart Buy Gets Tz Into A Tight Spot
The Age
Tuesday March 15, 2005
By buying its product developer, TZ plans to open doors with its remote-control fasteners for awkward spaces
TINY fastener company TZ Ltd has agreed to pay $US12 million ($A15.1 million) for a US company that will effectively become the company's product development operation.TZ had been using PDT on a contract basis to help develop, engineer and produce a prototype of its radical new type of fastener.TZ's intelligent fasteners are secured and unsecured remotely, responding to encoded signals sent from a wireless computer. They are suitable in high-value products such as aircraft, cars and various appliances and can reduce production costs.The fasteners can be used in confined spaces where there is no room for a screwdriver or other tools, and make the future servicing of the products easier.TZ will pay $US5 million now and will place a further $US1 million in escrow for any adjustments required after the close of the PDT accounts for the year to December 2004. The deal will not deplete TZ's cash balances as at December 31, when it had $11.3 million on issue.TZ only recently received the first payment of $US5 million from the Textron group in the US. Textron is to pay a total of $US10 million for an exclusive licence over certain TZ products.Textron is the world's largest maker of fasteners, and also owns the Cessna and Bell Helicopter companies."The acquisition of PDT is a very important development for us," said TZ chief executive Chris Kelliher. "One immediate benefit is the dramatic increase in our ability to meet the increasing demand for our intelligent fastening technology."Mr Kelliher said the technology was fast gaining attention in the aerospace and defence industries. TZ and PDT would continue to operate as separate entities, with PDT providing a range of services to TZ.TZ is also working with aluminium giant Alcoa on a range of fasteners that will simplify the construction and installation of building products.Alcoa executive Tom Hennessy said TZ had been an innovation partner with Alcoa for more than two years and that a major product system would be commercialised before the end of the year.TZ shares yesterday closed steady at 67 ?.The reporter owns TZ shares.
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