PETALING JAYA: Hygiene care and air care integrated solutions provider RGT Bhd is acquiring a 70% stake in Top Degree (M) Sdn Bhd for RM14 million with a profit guarantee of RM8 million in two years.
RGT CEO Datuk Lim Seat Hoe is optimistic that with Top Degree’s strength and experience, the group will be able to provide a wider range of offerings, from the manufacturing of high-precision machining parts and components to designing, building, and commissioning of automated systems including build to requirements customers as well as servicing MNCs beyond the hygiene care and air care sector to those in the electronics and medical industry.
The acquisition of the vertically integrated automation solutions provider will enhance the group’s earnings base.
“No new shares will be issued as RGT will use internally generated funds to acquire the 70% stake in Top Degree. Top Degree’s existing shareholders will be provided a profit guarantee of RM8 million for 24 months, covering the period between Jan 1, 2022 and Dec 31, 2023.
“Post-acquisition, RGT plans to strengthen and grow Top Degree further to undertake bigger projects from more MNCs. Meanwhile, RGT is committed to enhance its overall research & development, design, and manufacturing capabilities,” it said in a statement.
