Specialist chemical business DGL has expanded its interstate fleet through the acquisition of Shackell Transport in a deal worth $8.9 million.
Operating for over 40 years, Shackell Transport specialises in bulk liquid haulage, offering regional and interstate distribution and linehaul services across Australia to customers in the food, mining, chemical, agricultural, building and construction industries.
DGL says this is the first acquisition for its Warehousing and Distribution division and will complement the existing fleet.
“Through the acquisition of Shackell Transport we are significantly expanding our transport fleet, adding 71 quality vehicles to the Group. Shackell Transport further enhances our service offering to our customers, providing them with additional services and capabilities to align with their needs,” said founder and CEO of DGL, Simon Henry.
“We are seeing more of our customers seeking efficiency in their supply chains and moving towards consolidating suppliers. By expanding our interstate transport and bulk tanker fleet, we are cutting out the need for multiple suppliers, saving on transport costs and offering our customers all services in the sphere of chemical management.”
Included in the acquisition is Shackell Transport’s fleet, consisting of 28 primer movers, 22 bulk liquid tankers and 31 trailers that cater for specialised products and services.
“Investing in quality equipment sets us up for the long-term and ensures we are able to keep up with the demand the industry requires. Expanding our inter-state transport fleet brings synergies between our three divisions and connects our Australia-wide network of facilities, giving us greater control over distribution and the customer service experience,” Henry added.
The $8.9 million acquisition price consists of a cash payment of $7.8M; and the issue of 506,912 fully paid ordinary shares in the capital of DGL.