THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Founded in 1995, Triox is a manufacturer-supplier of advanced pesticides, formulated for application in agricultural and/or home & garden settings. Primarily focusing on the control of snails & slugs, rodents, and invasive weeds, the Business develops and produces its own branded product lines, which it wholesales to major ag-supplies distributors as well as national home & garden retailers. In addition, Triox provides contract manufacturing services to the broader pesticide market. Using proprietary IP, it toll manufactures on behalf of major brand-owners and has also developed private label products for national distributors. With its own purpose-built factory, the Business operates as the only high-volume producer of pelletised baits on Australia’s eastern seaboard. It is further differentiated by the effectiveness of its goods, the depth of its technical expertise, and the highly personalised service it offers.
In 2022, Triox’s three long-standing directors decided it was time to seek a new owner for the Business as a step towards their eventual exit to retirement. They engaged Johnsons Corporate to undertake a national sales campaign on their behalf, with the objective of finding a trade buyer whose positioning and capabilities would allow them to continue servicing Triox’s mixed customer-base. Representing commercial and consumer end-markets, blue-chip clients include pesticide brand-owners, major suppliers, and national retailers in both the agriculture and home & garden spaces.
The National Sales Strategy
As an acquisition opportunity, the Business boasted a number of features that would make it attractive to strategic acquirers. Beyond a long history of consistent revenue growth, these included proprietary product and manufacturing IP, high-volume manufacturing capabilities, and a portfolio of established in-house brands.
Johnsons Corporate’s custom research & marketing targeted the Australian markets, with a focus on companies operating in pesticide manufacturing as well as in the contract manufacturing of industrial chemicals. In addition, Johnsons commissioned secondary research into adjacent sectors including pesticide distributors, chemical suppliers, and the manufacturers of related products, e.g. fertiliser. Johnsons’ proactive direct marketing campaign uncovered a wide range of interested parties from across the different research segments. It elicited almost 40 expressions of interest. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 16 weeks of going to market.
The ASX-Listed Buyer
DGL Group is a market leader in chemical formulation and contract manufacturing as well as in related warehousing and distribution, waste management, and environmental solutions. This acquisition provided the company with a platform for further growth into the agricultural sector, boosting its manufacturing capabilities and market reach.