WRIGHT DIGGING NEW DEAL

Written on the 12 July 2010 by Tom Reid

WRIGHT DIGGING NEW DEAL

IN a move that will bolster confidence for local manufacturers, Digga Australia will relocate its latest Sydney acquisition to the company’s Yatala headquarters this month.

Earthmoving equipment manufacturer Digga has bought Peakhurst-based Universal Augers Australia off its UK parent company Universal Augers International in an undisclosed deal and expects to double turnover within two years.

The UK operation is one of the world’s leading suppliers of foundation drilling tools and accessories, servicing Europe, the Middle-East, Asia and the now Digga-owned Australian arm.

Digga CEO Suzie Wright (pictured) says the acquisition completes the company’s product range and strengthens the company’s operations in both Australia and Europe.

“The merge provides Digga the opportunity to now offer a fully comprehensive range of products and, with the new on-road network of Digga service trucks, means our clients can go to one company for all their required products and service back-ups,” says Wright.

“We’re very hopeful that coupled with Digga’s larger gearboxes, we can double the revenues of Universal Augers within two years. The UK operations of Digga and Universal Augers will also work together, with Universal focusing more on the UK, and Digga the rest of Europe.”

Wright had been in negotiation with Universal Augers for three years and says the two companies have a long history together.

“Universal Augers was formerly Pengo Australia – the company that Digga originally broke away from and went into competition with,” she says.

“For years they were in direct competition with us, however over the last 12 months they focused on importing the large foundation tools that the UK parent specialises in. They have a niche market for those products whereas Digga specialises in the small to mid-sized drilling attachments. The opportunity to offer these foundation drilling products from Digga’s Yatala operation really heightened my desire to purchase the company.”

Wright forecasts 35-45 per cent growth in Digga’s revenue, currently around $45 million per year. Universal Augers pre-takeover annual revenues were around $1.5 million.

Digga has undergone rapid expansion over the last 18 months, having acquired Kanga Loaders in early 2009 and moving the manufacturing of the mini diggers and loaders to its Queensland factory.


Author: Tom Reid

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