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DGL GROUP LIMITED — M&A Activity 2021
Sep 28, 2021
64770_rns_2021-09-28_07c532bb-7e77-4f6b-8e01-6f367a6f7eda.pdf
M&A Activity
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ASX RELEASE
29 September 2021
DGL adds to WA capabilities through acquisition of Profill Industries
Auckland, New Zealand - DGL Group Limited (ASX:DGL) (NZX:DGC), ( “DGL” or the “Company” ), a specialist chemicals business that manufactures, transports, stores and processes chemicals and hazardous waste, today announced the strategic acquisition of Profill Industires Pty Ltd (“Profill”) for $7.65 million.
Profill is a chemical manufacturer based in Wangara, Western Australia. The company provides chemical manufacturing, blending and packing services to customers across Australia and has been operating profitably for over 10 years. It services the home and garden, fertiliser, agricultural and industrial chemicals markets. Other offerings include formulation development and registration services for the agricultural chemical and crop protection markets.
Included in the acquisition are the leases of multiple warehouse and manufacturing facilities in Western Australia and the appropriate licences and planning approvals for these operations. The business and assets will be fully integrated into the broader DGL Group, and will operate as a subsidiary of DGL’s chemical manufacturing business.
Founder and CEO of DGL, Simon Henry, said: “The Profill acquisition broadens our service offering and footprint in Western Australia, where we have been focused on growing our business and customer base. Through Profill, we will be accessing a greater share of the home and garden market, producing chemical products in smaller packaging sizes, and extending our existing chemicals and capability offering through the recently acquired Opal Australasia business.
“The acquisition brings a number of new customers that we aim to service across Australia’s east coast delivering national solutions. We also see a significant opportunity to cross-sell and engage these customers across all three of our divisions for manufacturing, warehousing and environmental recoveries.
The acquisition price of $7.65 million represents a valuation of 4.5 x FY21 normalised EBITDA. The acquisition will be funded by both cash and $5.5 million in DGL shares based on the share price at the time of signing the conditional share and purchase agreement. Staff and management will be retained to continue to driving growth in the Profill business, as part of the broader DGL Group.
As per DGL’s objective to invest funds raised via its May 2021 Prospectus into strategic initiatives, DGL remains in active discussions with a number of accretive acquisition targets
DGL Warehousing and Distribution 739 Progress Road Wacol, QLD 4076 Brisbane, Australia
DGL Group Head Office Level 12, 63 Albert Street Auckland 1010, New Zealand p +64 9 309 9254
DGL Environmental Solutions DGL Chemical Manufacturing 201 Five Islands Road 120 Fulton Drive Unanderra, NSW 2526 Derrimut, VIC 3026, Wollongong, Australia Australia
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involved in chemical manufacturing, warehousing and distribution, environmental recovery and treatment, and for the acquisition of complementary real estate.
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Approved for release by the Board of DGL.
CONTACT
Barbara Furci DGL Group Limited +64 9 309 9254 or [email protected]
MEDIA ENQUIRIES
Susie Reinhardt Cannings Strategic Communications +61 401 399 781 or [email protected]
Lucy Wigney Cannings Strategic Communications +61 438 960 201 or [email protected]
ABOUT DGL GROUP LIMITED
DGL is a well-established, founder-led, end to end chemicals business that manufactures, transports, stores and manages the processing of chemicals and hazardous waste. The Company operates a network of 26 sites, both owned and leased, across Australia and New Zealand. The Company has a strong track record of revenue and earnings growth. Total proform revenue was $180.1 million in FY20 and is forecast to increase to $209.7 million in FY22.
DGL Warehousing and Distribution 739 Progress Road Wacol, QLD 4076 Brisbane, Australia
DGL Group Head Office Level 12, 63 Albert Street Auckland 1010, New Zealand p +64 9 309 9254
DGL Environmental Solutions DGL Chemical Manufacturing 201 Five Islands Road 120 Fulton Drive Unanderra, NSW 2526 Derrimut, VIC 3026, Wollongong, Australia Australia