The $8.9 million deal brings solid fleet boost for buyer
Vertically integrated chemicals operation DGL has added Shackell Transport to its stable, hard on the heels of its AUSblue purchase announcement.
Founded in 1976, family-owned Shackell, a bulk-liquid transporter with exposure to the molasses sector, is also involved in regional and interstate distribution and linehaul services nationally for the the food, mining, chemical, agricultural, building and construction industries.
Based in Pottsville, New South Wales, the firm brings with it 28 Kenworth and Volvo primer movers, 22 bulk liquid tankers and 31 largely Tieman and Barker trailers, many specialised, for a total price of $8.9 million – $7.8 million in cash and 1.1 million in shares.
DGL underlined the vehicles’ importance, marking them as a significant fleet expansion.
It also noted that the deal was first acquisition for DGL’s warehousing and distribution division (WDD), one that would “complement existing fleet, bringing synergies and greater control over the distribution of chemicals, while also enhancing the [DGL’s] visibility and access to the bulk chemical industry”.
Read how DGL snapped up AdBlue specialist AUSblue, here
“Shackell Transport further enhances our service offering to our customers, providing them with additional services and capabilities to align with their needs,” DGL founder and CEO Simon Henry added.
“We are seeing more of our customers seeking efficiency in their supply chains and moving towards consolidating suppliers.
“By expanding our inter-state 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.”
“Investing in equipment is a core part of DGL’s growth strategy to achieve further economies of scale, driving growth through organic opportunities and greater operating efficiencies.
“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.”
A DGL spokesperson confirmed the company’s desire to build up and diversify, with the WDD a main focus of that and the challenge now being to make “best use of all assets” with the support of Shackell executives and staff.
“Mark Cotelli and Tim Shackell along with the whole Shackell team will stay on and work with DGL to develop the division organically,” the spokesperson told ATN.