PETALING JAYA: Tex Cycle Technology (M) Bhd
has announced that all conditions precedent under the share sale agreement for the acquisition of a 60% equity stake in Safety & Environmental Laboratory Sdn Bhd (SEL) have been successfully fulfilled, rendering the transaction unconditional.
In a statement, the waste management and recycling solutions provider said SEL will now be integrated into Tex Cycle’s operations, allowing both entities to leverage their respective expertise and resources to deliver a wider range of solutions.
“SEL’s accredited laboratory services and environmental compliance capabilities complement Tex Cycle’s scheduled waste management expertise, creating synergies that enable cross-selling opportunities, operational efficiencies, and more comprehensive service offerings to clients across multiple industries.
Tex Cycle said the acquisition also includes a profit guarantee of RM2mil profit after tax for the financial years ending 2024 and 2025 and a net tangible asset value of not less than RM4.4mil, underscoring SEL’s established track record and providing further assurance of value creation for Tex Cycle’s stakeholders.
Tex Cycle said the acquisition marks another key step in its growth strategy of combining organic expansion with targeted mergers and acquisitions.
“By bringing SEL into the group, Tex Cycle further enhances its portfolio in scheduled waste management, environmental compliance, and renewable energy, positioning itself to capitalise on the growing demand for sustainable environmental solutions across Malaysia and beyond.”
Group chief executive officer Gary Dass Anthony Francis said the move marked an exciting step forward for Tex Cycle, adding that the company is now well-positioned to combine strengths and expand its leadership in sustainable waste and environmental management.
"SEL’s accredited expertise and long-standing reputation in the industry, spanning environmental and occupational safety monitoring, engineering solutions, laboratory testing, and training programs, provide us with a strong platform to scale up, enter new market segments, and deliver greater value to our clients.
“The synergies from this integration, backed by the profit guarantee, will accelerate our growth momentum and reinforce our commitment to advancing Malaysia’s sustainability and compliance agenda,” he said.
