MELBOURNE, AUSTRALIA: DGL Group Limited (ASX:DGL) has announced the strategic acquisition of Temples chemicalc warehousing division.
Situated in Welshpool southeast of Perth, Temples specialises in chemical warehousing and distribution.
Temples adds 13,000 tonnes of chemical storage capacity to DGL’s WA operations and over 10,000 sqm of strategic operational space for transport equipment and shipping container work. This takes DGL’s total chemical storage to more than 153,000 tonnes across 56 dedicated chemical management sites.
Founder and CEO of DGL, Simon Henry, said: “The acquisition of Temples chemical warehousing division helps with our organic growth as well as targeted new business opportunities.”
Temples storage and service capabilities will vertically integrate into DGL’s WA manufacturing operations and strengthen service to DGL’s extensive customer base.
The acquisition price of $3. 5M represented a valuation of 2.2 x FY21 normalised EBITDA. Consideration is a cash payment of $3.5M.
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 56 sites, both owned and leased, across Australia and New Zealand. The Company has a strong track record of revenue and earnings growth.