- DGL Group has announced the acquisition of the leading manufacturer and distributor of AdBlue®, AUSblue Group.
- The acquisition aligns with DGL’s growth strategy to diversify and broaden our service offerings across Australia and New Zealand.
ASX-listed chemical manufacturing Group DGL Group Limited (ASX:DGL), announced the strategic acquisition of the AUSblue Group on Thursday.
AUSblue is a leading manufacturer and distributor of AdBlue®, a diesel exhaust fluid that eliminates harmful nitrous oxides and helps reduce emissions. At present, AUSblue produces more than 50 million litres of AdBlue annually for its 628 active customers in the mining, transport and government sectors and major fuel retailers across Australia.
The announcement revealed that the acquisition would add value to DGL’s current AdBlue® business in New Zealand and bring additional scale and capacities to the chemical manufacturing group. In addition, the acquisition includes transport vehicles and strategic property leases.
According to today’s announcement, the acquisition price consists of:
(a) A cash payment of AU$2,2 million; and
(b) Issuance of 4,539,470 fully paid ordinary shares in the capital of DGL Group.
Today, the stock DGL closed at AU$2.850 per share on ASX.
The acquisition marks DGL’s expansion into a completely new industry, the automotive formulation industry. This is a positive move for DGL and aligns with the Company’s growth strategy to diversify and broaden our service offerings across Australia and New Zealand. Nonetheless, DGL is also eying significant opportunities for its Warehousing and Distribution and Environmental divisions to pick up additional business from this acquisition.