End-to-end chemicals operation, DGL, has seized an opportunity to break into the sustainable vehicle market.
DGL – a business that manufactures, transports, stores and processes chemicals and hazardous waste – is acquiring Austech Chemicals for a cash payment of $13 million.
Austech manufactures non-oil automotive chemicals including coolants, brake fluids, solvents, flammables and aerosols. Over the last 20 years it has developed a unique intellectual property for chemical formulations in the automotive industry.
“With the acquisition of Austech, DGL will now have a network of 51 facilities stretching from Darwin to Christchurch with a throughput of over 1.5 million MT per annum and servicing over 2,000 regular customers,” said DGL founder and CEO, Simon Henry.
Austech adds to the already established Trans-Tasman presence of 30 chemical manufacturing sites across Australia and New Zealand. Austech formulates over 12,000 MT of specialty chemicals per annum for its strong customer base, including major oil and retail blue chips. DGL will work to enhance these relationships to develop a strong network capable of delivering the chemicals of the future.
Austech further enhances the capabilities of DGL’s Chemical Manufacturing division reinforcing the company as the leading full-service chemical management company in Australia and New Zealand. Aligned with DGl’s cross-sell strategy, there are significant opportunities to attain additional business within the group.
In financial year 2020 DGL reported pro-form revenue of $180.1 million. The company operates 52 sites, both owned and leased, across Australia and New Zealand.