DGL on hat-trick WA deal

Specialist chemicals company DGL Group has continued its expansion in Western Australia by acquiring Wangara-based Total Coolant Management Solutions. 

The Melbourne-headquartered business will pay just shy of $2.5 million for Total Coolant, a manufacturer and distributor of maintenance prevention products for mining, marine, power generation and agriculture sectors.

It marks the third acquisition DGL has made in WA in the last 12 months.

DGL purchased its first Wangara-based business, Profill Industries, in September for $7.6 million.

Profill is a chemical manufacturer that services the home and garden, fertiliser, agricultural and industrial markets.

Prior to that, it bought Kwinana-based Opal Australasia for $8.6 million in August. 

Opal has been operating for 20 years and is one of only two independent agricultural chemical toll manufacturing companies in Western Australia.

Commenting on today's announcement, DGL founder and chief executive Simon Henry said buying Total Coolants would add to the company’s mining product range.

Consideration will be split between a $2.2 million cash payment and $300,000 worth of DGL shares, with the acquisition price representing 2.7 times the company's FY21 earnings. 

DGL Group shares were up at 12:17pm to trade at $4.15.