Tex Cycle acquires Meridian World for RM55mil

KUALA LUMPUR: 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 for Tex Cycle, enhancing its capabilities in scheduled waste management and chemical processing.

As part of the acquisition, Meridian World's vendors guaranteed a total audited consolidated profit after tax (PAT) of at least RM12mil for the financial years ending Dec 31, 2024 (FY24), and 2025, provided the audited consolidated PAT for FYE 2024 is no less than RM5.3mil.

If the minimum PAT for FYE 2024 is not met, the profit guarantee period will be revised to FYE 2025 and 2026 instead.

The profit guarantee enhances Tex Cycle’s earnings visibility and reinforces confidence in the acquisition’s financial viability. The synergy between both companies is expected to improve operational efficiency and strengthen the group’s competitive position in Malaysia’s environmental management sector.

Tex Cycle group chief executive officer Gary Dass Anthony Francis stated that the signing of the agreement marked a transformative step for Tex Cycle as it continued to expand its expertise and capabilities.

“Meridian World’s strong track record in scheduled waste management, particularly in chemical processing, environmental engineering, and its niche waste codes, including e-waste, aligns seamlessly with our long-term growth strategy.

“This acquisition is not just about expanding our reach but elevating our ability to provide sustainable and innovative waste management solutions. Together, we are setting new industry benchmarks that will drive long-term value for both our stakeholders and Malaysia’s environmental sustainability efforts,” Gary said.