MELBOURNE, AUSTRALIA: DGL Group Limited (ASX: DGL) announced the strategic acquisition of RLA Polymers NZ Limited (trading as Bondlast NZ Limited), a manufacturer and distributor of quality products into the building and construction industries.
The acquisition price of $4.6 million consists of a cash payment of $3.45 million and the balance by fully paid ordinary shares in the capital of DGL Group.
DGL is a specialist chemicals business that manufactures, transports, stores and processes chemicals and hazardous waste.
Primary activities include manufacturing of synthetic latex compounds, flooring adhesives, waterproofing sealants, ceramic tile adhesives and self-levelling cements for the building and construction industry.
RLA Polymers NZ has a strong domestic and international customer base, including major construction companies and retail blue chips.
Founder and CEO of DGL, Simon Henry, said: “RLA Polymers New Zealand adds to DGL’s already established Trans-Tasman presence of over 54 facilities stretching from Darwin to Christchurch.”
This strategic acquisition of RLA Polymers New Zealand further enhances the capabilities of DGL’s Chemical Manufacturing segment in New Zealand, reinforcing the company’s objective to become leading full-service chemical management company in Australia and New Zealand.
“Staff and management will be retained to continue to drive growth in the RLA Polymers NZ Limited business and expand the technical capabilities of the broader DGL Group,” a bourse filing said.
DGL Group would also like to advise that it has had a stronger than expected start to the second half of FY22 and is continuing to pursue further acquisition opportunities.