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- DGL Group (DGL) is acquiring Austech Chemicals in a cash and share deal in a move targeting the sustainable vehicle market
- Austech develops unique intellectual property for chemical formulations used in the automotive industry
- For Austech, DGL will pay a cash payment of $13 million and issue over 5.3 million shares
- If successful, the purchase will add 30 chemical manufacturing sites across Australia and New Zealand
- On market close, DGL is in the grey and trading at $2.80 per share
DGL Group (DGL) looks to purchase Austech Chemicals in a cash and share deal, targeting the sustainable vehicle market.
For the last two decades, Austech has developed unique intellectual property for chemical formulations used in the automotive industry. It specialises in the manufacturing of non-oil automotive chemicals such as coolant, brake fluids, solvents, flammables and aerosols.
It is widely recognised that as Australia moves into more sustainable vehicles that more advanced fluids will be required.
DGL will make a cash payment of $13 million and issue over 5.3 million shares to acquire Austech.
If successful, Austech will add 30 chemical manufacturing sites across Australia and New Zealand.
DGL’s CEO, Simon Henry, said the purchase will give DGL 51 facilities stretching from Darwin to Christchurch.
“[And] with a throughput of over 1.5 million MT per annum and servicing over 2000 regular customers.”
DGL believes the acquisition will further enhance the capabilities of its chemical manufacturing division and will provide it with significant opportunities.
On market close, DGL was in the grey and trading at $2.80 per share.
