SYDNEY, AUSTRALIA: DGL Group (ASX: DGL) 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”. 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.

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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