DGL Group (NZX:DGC) purchases Austech Chemicals

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DGL Group (NZX:DGC) purchases Austech Chemicals

DGL Group to buy Austech Chemicals Pty Ltd
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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.     

Related article; DGL Group (NZX:DGC) finalises acquisitions of AUSBlue and Profill Industries 

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. 

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