DGL Group's Acquisition of Australian Petro Chemical Storage

DGL Group Limited (ASX: $DGL) has announced the acquisition of Australian Petro Chemical Storage Pty Ltd (APCS) for $5.5 million. APCS operates a major hazardous facility (MHF) on a licensed storage site at 14 Williamson Road, Ingleburn NSW 2565. The acquisition is expected to enhance DGL's capability to supply essential chemicals and flammable liquids to the key Sydney and NSW markets. This strategic move will allow DGL to expand its chemical and logistics service offering to existing and new customers.

Executive Commentary on the Acquisition

Simon Henry, CEO, stated, 'The acquisition of APCS expands DGL's storage and logistics capabilities in New South Wales, allowing DGL to meet the growing needs of its customers and attract new customers. The acquisition will also bring significant synergies to DGL's expanding chemical road tanker fleet, and reduce costs at other Group sites.'

Summary of DGL Group's Acquisition

DGL Group Limited (ASX: $DGL) has acquired Australian Petro Chemical Storage Pty Ltd (APCS) for $5.5 million, aiming to expand its chemical and logistics service offering in New South Wales. The acquisition is expected to be earnings accretive and will be funded from operating cash flows. With the increase in bulk chemical storage capabilities, the Group aims to drive further vertical integration and efficiencies of scale across its divisions. This move also provides the opportunity for DGL to expand its chemical logistics and storage services to existing and new customers. The acquisition is set to settle in October 2024 and is anticipated to bring substantial synergies to DGL's operations, particularly in the area of chemical road tanker fleet and cost reduction at other Group sites.