DGL Acquires Silicone Manufacturer Flexichem

As part of DGL’s ongoing strategy to grow organically through acquisitions, we are delighted to confirm our acquisition of Flexichem. 

About Flexichem

A family-owned business, the speciality silicone manufacturer in Australia provides product applications for a diverse cross-section of domestic and export industries, including: 

• Water treatment
• Agrochemical
• Food processing
• Mining
• Automotive
• Personal care 

Founded in the 1980s, Flexichem’s purpose-built manufacturing facility is located in Adelaide, South Australia. Its geographical position expands DGL’s physical locations, providing a strong technical base in chemical development and 1,200 tonnes of additional chemical manufacturing capacity. Furthermore, its proximity to a global distribution services network ensures DGL can service Australia and abroad within particularly short time-frames, thus maximising product shelf-life. 

Why DGL has purchased the silicone manufacturing company 

Flexichem has established a reputation as a leading innovator of high-quality, speciality industrial applications. Moreover, the company is committed to providing technical support and educating customers about its products. Such qualities resonate with DGL’s commitment to providing clients with the best products, facilities, knowledge, and capabilities, as outlined on our Why DGL page. 

DGL Founder and CEO, Simon Henry, says: 

“The acquisition expands our manufacturing capabilities into South Australia, adds talent and intellectual property on silicone-based manufacturing into DGL, and also opens up new export markets”. 

The AU$6.2M past cash/part shares purchase, representing a valuation of 4.6 x FY21 normalised EBITDA, is one of many we have announced in recent months. This forms part of a strategy to increase our 3,200-strong existing customer base and chemical manufacturing product offering, minimise touch-points with disparate suppliers and create a circular solutions business model. 

Flexichem will vertically integrate into DGL’s manufacturing operations.

Contact us 

To find out more about DGL or our acquisitions, contact our team today.