SYDNEY, AUSTRALIA: DGL Group Limited (ASX:DGL) announce the proposed acquisition of Enlog Pacific Holdings Pty Ltd (Enlog), a specialist logistics business covering highly regulated materials and industrial services, subject to regulatory approvals.

Enlog Pacific, which commenced operations in 1990, specializes in freight and logistics services for the safe management and transport of hazardous materials.

Operating throughout Australia, Enlog serves more than 500 customers from 6 capital city sites, with key customers including government agencies and the oil & gas, energy & resources, and medical industries.

Enlog’s offerings include hazardous goods storage and distribution via its road freight division, global ocean freight logistics, and airfreight logistics services for a wide variety of industries.

The company has extensive experience with the safe transport of time-sensitive shipments, including short half-life radioisotopes, perishable refrigerated shipments, cryogenic cargo requiring special handling with liquid Nitrogen, and explosives.

Enlog Pacific maintains a wide range of qualifications, authorities, and accreditations.

Strategically, the acquisition of Enlog introduces new classes of products and services into the broader DGL network. DGL also sees significant opportunities to expand its existing chemicals manufacturing, logistics, and recycling services into the customer base currently served by Enlog.

DGL considers the acquisition of Enlog to be highly strategic, as it will result in the company expanding both its customer base and its offering of logistic services to include additional classes of hazardous goods.

The acquisition will also allow the expansion of the company’s current sample logistics operation, ALM, at low cost by utilizing Enlog’s current licensed facilities across Australia.

The acquisition price of $2.35 million represents 2.5 times EBITDA to be funded via a $2.0 million cash payment and $350,000 via the issue of DGL Group shares at a price equal to the 10-day trading VWAP immediately prior to settlement.

The shares will be issued from the company’s existing placement capacity and will be escrowed for a period of 6 months from the date of issue.

Simon Henry, CEO, stated: “The acquisition of Enlog expands the breadth and reach of DGL’s specialized logistics offering, further entrenching DGL as a diversified and full-service operator in the market.

The acquisition will also bring significant synergies to DGL’s current sample logistics offering, ALM, with the business poised to accelerate growth as a result of the acquisition.”