- DGL Group has announced the strategic acquisition of Shackell Transport Pty Ltd.
- The acquisition is undertaken with the aim to expand the inter-state fleet of the company.
- The acquisition of Shackell transport is the first acquisition by DGL for the Warehousing and Distribution department.
DGL Group Limited (ASX:DGL) announced today that it has strategically acquired Shackell Transport Pty Ltd. The acquisition will expand the inter-state fleet of the company.
Following the announcement, the shares of DGL were trading at AU$2.88 which is 1% higher than the previous day close.
Acquisition of Shackell Transport
Shackell Transport is in the business of freight carrier services for 40 years and is specialises in bulk liquid haulage. Shackell is engaged in interstate and regional distribution services across Australia.
It is the first acquisition by DGP for the Warehousing and Distribution department. The acquisition will create synergy along with that it will enhance the access to broader chemical industry and visibility.
The acquisition includes 22 bulk liquid tankers, 28 prime movers and 31 trailers. To achieve operating efficiency, economies of scale and driving organic growth, DGL is planning to make investments in equipment.
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For acquisition, the AU$7.8 million will be paid in cash and 506,912 ordinary shares will be issued in the capital of DGL. The total acquisition amounts to AU$8.9 million.
Simon Henry, CEO and Founder of DGL commented on the acquisition,
The acquisition of Shackell allows the company to expand its operation interstate. Shackell experience in the transportation will add synergy to the operations of DGL and the company will gain access vast number of opportunities such as access to the broader chemical market. DGL growth strategy includes investment in the equipment as it will add economy of scale. It is the first acquisition of the warehousing and distribution division of DGL.