Hextar Global which has been in the news for its acquisition trail, is back with another proposition on acquiring Nobel Synthetic Polymer Sdn. Bhd. and Nobel Scientific Sdn. Bhd which manufactures and supplies chemical derivatives and coating.
According to its announcement, Hextar expects the purchase to contribute positively to the earnings from fourth-quarter of financial year ending 2021 onwards. The Nobel Group, with its in-house research and development capabilities and years of experience in R&D initiatives in practical applications of polymers in the rubber industry, produces proprietary formulations with a focus on rubber and/or rubber related products such as high performance custommade anti-tack rubber lubricant and coatings. Its customers include some of the world’s largest rubber glove manufacturers.
Hextar will acquire the entire issued share capital of both entities for a total consideration of RM105 million to be transacted entirely in cash funded through a combination of internally-generated funds and bank borrowings. The acquisition comes with a profit guarantee of an aggregate of RM42 million over 3 years which translates into an after-tax profit of RM14 million per year.
Commenting on the approval, Executive Director, Dato’ Eddie Ong Choo Meng said, “We are focused on the quality of the new businesses that we acquire to ensure that the outcome will result in compounding growth for the group supported by a strong balance sheet. The group recently completed the acquisition of the Chempro Business (comprising Chempro Technology and Alpha Aim Sdn. Bhd.) and is looking forward to kicking-off the integration of the Nobel Group.
There are synergies between these two companies, consolidation of the Chempro Business and the Nobel Group into Hextar coupled with the pending acquisition of ENRA Kimia Sdn. Bhd. all play a vital role in the company’s growth. Hextar itself was merged business with Halex Holdings Berhad, all involved in industrial chemicals.