- DGL Group (DGL) is set to acquire Nightingale Transport to expand its nationwide presence
- The company will receive 100 additional trucks and trailers and utilise Nightingale’s strong national transport capability
- DGL’s acquisition will expand the company’s national logistics reach and improve its offerings to key industries in Australia
- The deal awaits fulfilment of certain contractual conditions by the vendors, but are expected to be met by the settlement date
- DGL Group shares are up 5.91 per cent, trading at $1.57 at 1:20 pm AEDT
DGL Group (DGL) has acquired Nightingale Transport in a bid to further expand the company’s national logistics reach.
The $18.2 million deal marks 3.7 times earnings before interest, taxes, depreciation and amortisation (EBITDA) of $4.9 million, and 1.1 times net debt position, remaining conservative. DGL’s acquisition is expected to be immediately earnings per share (EPS) accretive, pre-synergies.
The company will be boosted by 100 additional trucks and trailers, increasing its nationwide fleet, while also utilising Nightingale’s strong national transport capability as a collection network for the backloading of lead and other recyclable materials to DGL’s other facilities.
DGL Group Founder and CEO Simon Henry said the acquisition will help expand the company’s nationwide presence.
“The acquisition of Nightingale expands our national logistics reach, allowing us to provide true business-to-business scale and capacity while enhancing DGL’s offering to target industries,” he said.
The deal awaits certain contractual conditions being met by the vendors, but is expected by the settlement date.
DGL Group shares last traded at $1.57, up 5.91 per cent at 1:20 pm AEDT.