Malaysian agro firm buys distributor
Hextar Global, a Malaysian agrochemical company, is acquiring Propel Chemicals (PCSB) for $3.5 million from Propel Global, Rancak Nikmat and Wiramas Baiduri, mainly in order to expand its speciality chemicals portfolio for oil and gas applications. The deal should be completed in Q4.
PCSB has been active in specialty chemicals and in environmental chemical services for the oil and gas industry, for about 30 and ten years respectively. Its licensed chemical storage and refilling facility in Kemaman will triple Hextar’s current capacity, enabling Hextar to expand its speciality chemical repacking business.
Propel Global said that it wanted to exit PCSB because it is has been losing money for three years in the face of increasingly strong competition from larger specialty chemicals players. It will use the proceeds to finance its working capital and settle the outstanding revolving credit of PCSB.