Hextar Global to acquire synthetic latex polymer manufacturer for RM13mil
KUALA LUMPUR: Hextar Global Bhd has entered into a share sale agreement to acquire the entire issued share capital of TufBond Technologies Sdn Bhd, a manufacturer of various synthetic latex polymers, for RM13mil cash.
It said in a Wednesday statement that the acquisition of TufBond comes with a profit guarantee of RM2mil per annum being the profit after tax for each consecutive year to derive an aggregate profit guarantee of RM6mil over three years.
The cash consideration for the acquisition will be funded from internally generated funds and/or borrowings.
"The acquisition allows Hextar to widen its customer base further to include textile, automotive and construction sectors.
"Coupled with our recent acquisitions, we are anticipating that the specialty chemicals sector will further contribute to our bottom line moving forward," said Hextar Global executive director Datuk Eddie Ong Choo Meng.
He added that together with the profit guarantee, the proposed acquisition will contribute to the group's profits and accelerate value accretion.