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DGL GROUP LIMITED — M&A Activity 2023
Apr 5, 2023
64770_rns_2023-04-05_c5c5370a-7a2e-469f-a68a-5633ed21de75.pdf
M&A Activity
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DGL Group Ltd Level 4, 91 William Street Melbourne, VIC 3000 Melbourne, Australia e [email protected]
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ASX Announcement (ASX: DGL)
6 April 2023
Acquisition of Triox Boosts DGL’s agriculture market and chemical manufacturing capabilities.
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DGL Group Limited acquires 100% of Triox Pty Ltd (“ Triox ”) a chemical toll manufacturing company in agriculture and pest control.
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The acquisition price of $5.5 million will be funded by cash, with DGL's net debt position remaining conservative.
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Triox is an Australian owned company supplying the agriculture and pest control markets since 1995, with vast experience in chemicals, manufacturing, packaging, and retail.
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DGL group see this as a long-term strategic acquisition that provides DGL with a platform of further growth into the agricultural sector.
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Triox has strategic short- and long-term growth strategies in place that will be accelerated with the DGL acquisition.
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DGL see an extensive opportunity in geographic expansion for Triox utilising DGLs extensive network and customer base allowing for a smooth integration.
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Existing Triox sites and assets will allow for DGL to utilise capabilities and capacity in supporting enhanced efficient service offerings.
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The transaction is subject to limited conditions precedent and expected to be completed on 1 June 2023.
DGL (ASX: DGL) today announces it has entered into an agreement to acquire Triox, a manufacturer and supplier of pesticides for agricultural and home garden uses.
The acquisition price of $5.5 million represents 4.6 x EBITDA. The acquisition will be funded by cash, with DGL's net debt position remaining conservative.
DGL’s Executive Director and General Manager Robert Sushames said: “Acquisition of Triox is the strategic next step in DGL’s expansion within the chemical manufacturing, agricultural and home and gardening markets. DGL have been successful in organic growth and required further capacity that Triox will enable us to utilise effectively.
We see an ability to not only utilise Triox existing sites, locations and assets for further manufacturing capability but importantly opportunities to use our customer base and expertise in accelerating Triox’s strategic plans in the niche sector.
Triox have been successful in market penetration and DGL will be able to assist in acceleration of their short- and long-term strategic goals in the market including launching premium products”.
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DGL Group Ltd Level 4, 91 William Street Melbourne, VIC 3000 Melbourne, Australia e [email protected]
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DGL have been successfully offering industry leading capabilities in contracted manufacture of products and see Triox being able to further grow its service offering and expand its customer base.
About Triox
Triox is a manufacturer and supplier of pest control products with over 25 years’ experience in the agriculture and home and garden sectors in Australia and New Zealand. Triox provides to the market expertly formulated, tested and proven high quality products and provides toll manufacturing services ranging from liquids to granular, powder and pelletised products.
Triox's growth strategy involves a combination of short-term and longer-term initiatives that focus on expanding market share, geographic footprint, and factory throughput capacity.
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Approved for release by the Board of DGL.
CONTACT
Investor and media relations
Barbara Furci DGL Group Limited +64 9 309 9254 [email protected]
ABOUT DGL GROUP LIMITED
DGL is a well-established, trusted, diversified industrial group, specialising in the manufacture, transport, storage of chemicals, processing of hazardous waste and recycling. The Company has a strong track record of revenue and earnings growth.
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