Nanofilm Technologies Engineering International's wholly owned subsidiary, Nanofilm AM Germany, entered into a share sale and purchase agreement with Burkhard Scholz to acquire the entire share capitals of EC Europ Coating and MC Europ Coating.

The total consideration for the proposed acquisition is 3.1 million euros with an earn-out consideration of up to 1.2 million euros, according to a filing with the Singapore Exchange on Wednesday.

Both target companies are incorporated in Germany and are engaged in the provision of thin film coatings.

The acquisitions are part of the company's strategic growth initiative.