Kuala Lumpur, Malaysia – Hextar Global Bhd. is acquiring Nobel Group, the manufacturer and supplier of chemical derivatives, coating and related products, for RM 105 million cash.
In an exchange filing, the agrochemical company entered a share sale agreement to acquire the entire stake in Nobel Synthetic Polymer Sdn. Bhd. and Nobel Scientific Sdn. Bhd.
The acquisition comes with a profit guarantee of RM 42 million over three years, translating into an after-tax profit of RM 14 million annually.
The acquisition will be funded through a combination of internally generated funds and bank borrowings.
“Subject to the approval by the regulators and our shareholders, 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,” said executive director, Datuk Eddie Ong Choo Meng.
Nobel Group was set up to provide high performance custom-made anti-tack rubber lubricant and coatings for the rubber industry.
Nobel Group produces proprietary formulations with a focus on rubber and rubber related products. Its customers include some of the world’s largest rubber glove manufacturers.
Both of these acquisitions will provide Hextar with an immediate presence in the speciality chemical industry and complement its agrochemicals segment.
“We continuously look into investment opportunities that will complement and build on what we have already achieved. These recent acquisitions will significantly increase our footprint in the chemical industry and strengthen the group’s growth profile, thus allowing us to continue to provide increasing long-term value to our stakeholders,” he added.