KUALA LUMPUR: Tex Cycle Technology (M) Bhd has acquired 60 per cent stake in Safety & Environmental Laboratory Sdn Bhd (SEL) for RM8.4 million.
In a statement today, Tex Cycle said the acquisition enables the company to expand its offerings to include comprehensive environment, health and safety services.
"This acquisition allows Tex Cycle to secure a profit guarantee from SEL with an audited profit after taxation (PAT) not to be less than RM2.0 million for each of the financial years ended 2024 and 2025.
"Additionally, SEL guarantees a net tangible asset value not less than RM4.4 million at the completion date," it said.
Tex Cycle group chief executive officer Gary Dass A/L Anthony Francis said the acquisition adds laboratory testing services into its portfolio, opening up extensive new business opportunities for Tex Cycle.
It said integrating SEL's expertise and services into its operations allows the company to offer comprehensive environmental, health, and safety solutions.
"This expansion not only strengthens our position in the market but also aligns with our strategic goals of enhancing service diversity and operational excellence, ensuring we continue to meet the evolving needs of our clients," he said.
SEL managing director Kaliswaran A/L Palanisamy said the company is thrilled to join forces with Tex Cycle.
"This collaboration not only enhances our capabilities but also broadens our reach, allowing us to offer our specialised laboratory testing services to a wider market.
"The integration presents substantial cross-selling opportunities, enabling both companies to leverage each other's strengths to deliver greater value and innovative solutions to our clients," added Kaliswaran.