KUALA LUMPUR, July 12 (Bernama) — Hextar Global Bhd said it will acquire Nobel Synthetic Polymer Sdn Bhd and Nobel Scientific Sdn Bhd for RM105 million cash.
The agrochemical company told the stock exchange it has entered into a share sale agreement to acquire the entire equity interest of both companies, collectively known as the Nobel Group.
The Nobel Group provides high performance, custom-made anti-tack rubber lubricants and coatings for the rubber industry.
“With their in-house research and development capabilities and years of experience in research and development initiatives in practical applications of polymers in the rubber industry, the Nobel Group produces proprietary formulations with a focus on rubber and rubber-related products,” it said in a statement.
The acquisition comes with a profit guarantee of an aggregate of RM42 million over three years which translates into an after-tax profit of RM14 million per year.
The acquisition will be funded through a combination of internally-generated funds and bank borrowings.
Hextar’s latest purchase followed the recent acquisition of Alpha Aim (M) Sdn Bhd and Chempro Technology (M) Sdn Bhd, which was approved by shareholders on June 14, 2021.
“The Nobel Group will form part of Hextar’s drive to expand its foothold in the chemicals industry and will be wholly owned by Hextar Global Bhd,” said executive director Datuk Ong Choo Meng.
He noted that while the Chempro business is in specialty cleaning chemicals where its products have wider applications across various industries, the Nobel Group is more focused on the rubber industry.
“Together, both these acquisitions will provide the Hextar group with an immediate presence in the specialty chemicals industry and complement our agrochemicals segment,” he said.
In its latest quarterly results, Hextar registered a revenue and profit after tax of RM114.8 million and RM10.7 million respectively.