Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), an established waste management and recycling solutions provider, is pleased to announce that it has entered into a conditional Share Sale Agreement (“SSA”) to acquire the entire equity interest in Meridian World Sdn. Bhd. (“Meridian World”) for a total cash consideration of RM55.0 million.
This acquisition marks a strategic expansion for Tex Cycle, further enhancing its capabilities in scheduled waste management and chemical processing.
Established in 1995, Meridian World is an established player in the scheduled waste management industry, offering comprehensive solutions ranging from waste collection, transportation, recovery, and treatment to wastewater management.
It is licensed by the Department of Environment to treat 22 codes of scheduled wastes, electronic waste, chemicals, acids and alkaline, waste catalyst, hydraulic and lubricating oil, contaminated rags and containers, rubber and latex, ink and sludge.
Operating from its fully licensed scheduled waste recovery facilities in Kedah, Meridian World serves a wide spectrum of industries, including semiconductor, chemical, and manufacturing sectors.
As part of this acquisition, the vendors of Meridian World have provided a profit guarantee of an aggregate audited consolidated profit after tax of not less than RM12.0 million for the financial years ending 31 December (“FYE”) 2024 and 2025, subject to its audited consolidated PAT of not less than RM5.3 million for FYE 2024 (“Minimum PAT for FYE 2024”).
If the Minimum PAT for FYE 2024 is not met, the profit guarantee period will be revised to FYE 2025 and 2026 instead. The inclusion of this profit guarantee strengthens Tex Cycle’s earnings visibility and reinforces confidence in the financial viability of this acquisition.
The synergy between both companies will further enhance operational efficiencies as well as the Group’s competitive edge in Malaysia’s environmental management sector.
Mr. Gary Dass A/L Anthony Francis, Group Chief Executive Officer of Tex Cycle said,
“The signing of this agreement marks a transformative step for Tex Cycle as we continue expanding our 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.”
Mr. Teoh Kok Cheow, Managing Director of Meridian World said,
“Joining forces with Tex Cycle represents an exciting new chapter for Meridian World to be associated and being part of an established player in the waste management and recycling solutions, thus alleviating our reputation and stature of being part of a listed entity on Bursa Malaysia Securities Berhad.
With Tex Cycle’s extensive industry presence and commitment to sustainable waste management, we are now in a stronger position to scale our business, penetrate larger clientele segments, and accelerate our growth trajectory.
The collaboration opens doors to greater technological advancements and operational synergies, allowing us to better serve our existing customer base, leveraging on Tex Cycle’s status as a listed entity thus allowing us to tap the capital markets, cross sharing of our shared resources, network and strengths while making a greater impact in the environmental solutions industry.”
With the execution of the SSA, Tex Cycle and Meridian World will work towards securing the necessary approvals and fulfilling conditions precedent for the completion of the acquisition.
Upon completion, Meridian World will become a wholly-owned subsidiary of Tex Cycle, strengthening the Group’s integrated waste management and recycling solutions/portfolio and contributing to its long-term sustainability initiatives.
For more information, visit https://www.texcycle.com.my/
