PETALING JAYA: Tex Cycle Technology (M) Bhd
has entered into a conditional share sale agreement to acquire the entire equity interest in Meridian World Sdn Bhd for RM55mil cash.
In a statement, the waste management and recycling solutions provider said the acquisition marked a strategic expansion to enhance its capabilities in scheduled waste management and chemical processing.
Meridian World’s vendors guaranteed a total audited consolidated profit after tax (PAT) of at least RM12mil for the financial years ended Dec 31, 2024 (FY24), and ending 2025, provided the audited consolidated PAT for FY24 is no less than RM5.3mil.
If the minimum PAT for FY24 is not met, the profit guarantee period will be revised to FY25 and FY26 instead. The profit guarantee will enhance Tex Cycle’s earnings visibility and reinforce confidence in the acquisition’s financial viability.
