KUALA LUMPUR: Hextar Global Bhd is buying TufBond Technologies Sdn Bhd (TufBond) for RM13 million.

Hextar Global said the acquisition would be funded from internally generated funds and/or borrowings. 

In an exchange filing today, the agrochemical company said it had entered into a share sale agreement (SSA) to acquire the entire issued share capital of TufBond, which manufactures various types of synthetic latex polymers.

Hextar Global said TufBond would provide a net profit of RM2 million per annum for each consecutive year to derive an aggregate profit guarantee of RM6 million over three years. 

Executive director Datuk Eddie Ong Choo Meng said the acquisition allowed Hextar Global to widen its customer base further to include textile, automotive and construction sectors. 

"Coupled with our recent acquisitions, we are anticipating that the specialty chemicals sector will further contribute to our bottom line moving forward," he said in a separate statement today. 

"We have identified companies such as TufBond because of their research and development capabilities and ability to provide us with immediate access to their customer base. 

"Together with the profit guarantee, the proposed TufBond acquisition will contribute to the Hextar group's profits thus accelerating its value accretion," he added.

TufBond was established in 1998. 

Its current products include pressure sensitive adhesives for tapes and labels, binders for textile, flame retardant adhesives for lamination, waterborne spray contact adhesives for the automotive sector, coatings for gloves and adhesives for roofing foils.