Chemicals business DGL (ASX:DGL)
has acquired the manufacturer Total Coolant for $2.47m.
Total Coolants is a manufacturer and distributor of maintenance prevention products in the mining, marine, wind farms, power generation, and agriculture sectors.
DGL said Total Coolant's diversified customer base and geographical footprint further enhance the capabilities of DGL’s chemical manufacturing division, aligned with DGL’s cross-sell strategy.
DGL said the acquisition price represents a valuation of 2.7 times its FY21 normalised EBITDA. The purchase consists of $2.17 million in cash and $300,000 ordinary shares in the capital of DGL.
Shares in DGL Group (ASX:DGL)
are trading 0.6 per cent higher at $4.14.