Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), an established waste management and recycling solutions provider, is pleased to announce that its subsidiary, TC Chemical Sdn Bhd, has signed a Share Sale Agreement (“SSA”) to acquire a 60% equity stake in Safety & Environmental Laboratory Sdn. Bhd. (“SEL”) for a total purchase consideration of RM8.4 million. This acquisition underscores Tex Cycle’s commitment to expanding its service offerings in environmental, health, and safety (“EHS”) compliance while reinforcing its leadership position in sustainable waste management.
This acquisition comes with a profit guarantee of RM2.0 million PAT for the financial years ending 2024 and 2025 and a net tangible asset value of not less than RM4.4 million. SEL, with its accredited laboratory services and expertise in environmental compliance, significantly enhances Tex Cycle’s ability to provide holistic sustainability solutions. By integrating SEL’s capabilities, Tex Cycle strengthens its market position while advancing its commitment to environmental responsibility.
Mr. Gary Dass A/L Anthony Francis, Group Chief Executive Officer of Tex Cycle said, “The acquisition of SEL is a strategic leap in Tex Cycle’s journey toward pioneering environmental sustainability. SEL’s deep expertise in EHS compliance and accredited laboratory services seamlessly aligns with our vision to deliver cutting-edge solutions to our clients. This partnership expands our capabilities, unlocking substantial synergies and strengthening our position as an industry leader. As we integrate SEL’s strengths into our operations, we reaffirm our dedication to driving innovation, setting new benchmarks in environmental management, and creating lasting value for our stakeholders.”
Kaliswaran A/L Palanisamy, Managing Director of SEL commented, “Partnering with Tex Cycle marks a significant milestone for SEL. This collaboration unlocks unparalleled opportunities to expand our reach, diversify our clientele, and scale our operations to new dimensions. What started as a vision is now becoming a reality with the signing of this SSA, paving the way for significant growth. Together with Tex Cycle’s industry expertise and extensive market presence, we are committed towards transforming SEL into a powerhouse in environmental testing and compliance—delivering exceptional services while championing a cleaner, greener future.”
This acquisition enables Tex Cycle to offer comprehensive environment, health, and safety services through SEL’s expert team and accredited laboratory services while generating significant operational synergies. These synergies include cross-selling opportunities between Tex Cycle’s existing waste management services and SEL’s accredited environmental compliance and laboratory analysis offerings. The Group is now better positioned to meet the increasing demand for reliable environmental testing and analysis, particularly as industries face stricter regulatory requirements.
Beyond business growth, this acquisition reinforces Tex Cycle’s commitment to environmental stewardship. The integration of SEL’s capabilities into the Group’s portfolio directly supports industries in their sustainability efforts, enabling businesses to achieve higher compliance standards while minimizing their environmental impact.
