Hextar expands chemicals arm

KUALA LUMPUR: Hextar Global Bhd (Hextar) announced that it has entered into a Share Sale Agreement (SSA) to acquire the entire equity interest in Chempro Group of Companies (Chempro), a manufacturer and supplier of specialty cleaning chemicals with more than 30 years of experience.

“Chempro will be wholly owned by Hextar subject to the approval of relevant authorities and shareholders,” said Hextar executive director Datuk Ong Choo Meng, in a press statement, referring to the 100 per cent acquisition by Hextar for consideration of RM138 million.

He is confident that Chempro would add value to Hextar Group as the SSA comes with a profit guarantee of RM39 million over three years which translates to a profit a er tax

Chempro will be wholly owned by Hextar subject to the approval of relevant authorities and shareholders. Datuk Ong Choo Meng

of RM13 million a year until financial year ending December 31, 2023 (FY23).

“This shows the confidence in this business which will further enhance the Groups earnings and gives great protection of shareholders interest,” Ong said.

“Although they are manufacturing a different type of chemicals as compared to our existing core business, we expect these businesses to command strong margins and further strengthen our foothold in the chemicals industry and we think is the right path to go.”

Chempro is a multinational hygiene specialty cleaning chemicals expert with a track record of operating in various locations around Asia, including Singapore, Malaysia, Thailand, Indonesia, Brunei, Hong Kong, Taiwan and China.

It provides niche specialty chemicals products for cleaning, hygiene and food industry as well as rubber glove industry in Southeast Asia.

In addition to high-quality and cost-effective products, Chempro also provides site audits, inventory management and technical support as part of their service commitment to customers. — Bernama