DGL Group (NZX:DGC) purchases Austech Chemicals

November 10, 2021 05:42 PM NZDT

Be the First to Comment

Neha Simpy

Author

Neha Simpy - Senior Research Editor
106 Posts
Neha is a Senior Research Editor at Kalkine Pty Limited, with a degree in journalism from Jamia Millia Islamia. She has written and edited articles pertaining to various sectors of Australia and New Zealand Stock Exchanges. She firmly believes ...
Follow Neha Simpy Follow

DGL Group to buy Austech Chemicals Pty Ltd — Image source: Copyright © 2021 Kalkine Media

Highlights

The Company declared the planned purchase of Austech Chemicals solidifying its position as a leader in complete service chemical management entity in ANZ region.

DGL would have network of 51 amenities extending from Darwin to Christchurch with output of above 1.5 million MT/ year.

A specialist chemicals business DGL Group Limited (NZX:DGC; ASX:DGL) notified the market on buying Austech Chemicals Pty Ltd.

How would Austech adds to chemical manufacturing sites in ANZ region?

There are already 30 chemical manufacturing locations in ANZ region prepare above 12K MT of specialty chemicals per year for its solid consumer base comprising of key oil and retail conglomerates. The Company is aiming to work towards enhancement of these associations to build a solid network adept to provide the chemicals in the upcoming period.

Simon Henry Chief Executive Officer DGL Group would now have a network of 51 amenities extending from Darwin to Christchurch with output of above 1.5 million MT per year and catering to above 2K regular consumers.

Details of the acquisition

The purchase price includes of –

NZ$13 million cash payment and

5, 306, 122 fully paid ordinary shares issued in the capital of the Company.

The management of the Company and workforce would both be preserved to maintain growth in Austech Chemicals business, which is a part of the broader DGL Group.

Bottom Line

Austech would add on the Company’s manufacturing section abilities solidifying its position as a leader in complete service chemical management entity in ANZ region. Supported with the Company’s cross-sell approach, there are many substantial prospects to achieve further business within the group.