Rich-lister builds logistics empire
Rich-lister Simon Henry’s acquisition of Australia’s largest dangerous chemicals company, DG Logistics, also adds more properties to his investments in Christchurch, Wellington and Auckland.
When combined with his company, Chempro, the operation will have 20 sites in New Zealand and Australia with 100,000 metric tonnes of chemical storage capacity, employing 250 staff members and producing annual revenues of more than $120 million.
Born and bred in Rangiora, Canterbury, the one-time beekeeper made his first headlines buying Christchurch commercial properties after the 1987 sharemarket crash.
He later moved to Auckland where he bought more properties, as well as Chempro.
Adding the DGL acquisition builds his estimated fortune to more than
$200 million.
‘‘Since the global financial crash in
2008 I put my mind to building a conventional industrial group like Hellabys used to be,’’ Henry said.
‘‘I have other acquisitions in my sights as well, but whether I’ll list on the stock exchange I don’t know yet.
‘‘Chemicals get sent into Australia and New Zealand from Japan, China and America. But they don’t want to differentiate between Dunedin and Adelaide, so it’s easier for them to have one operator than have to deal with different ones in each country. It’s all about efficiency and seamless supply chains.’’
Combining Chempro with the latest Australian acquisition has created a one-stop logistics and storage group to be called DGL Logistics for international chemical importers.
The value of DGL is estimated at more than $50m, valuing the new combined group with Chempro at between $75m to $100m, depending on how it is measured.
DGL is the shortened name of Dangerous Goods Logistics and adds to Henry’s other Australian investment Hydromet, a chemicals water treatment company and waste recycler.
Henry said one of the benefits of buying the Australian company was that it had licences to store and move chemicals which would be difficult, if not impossible, to obtain nowadays.
Chlorine was among the many chemicals already imported and stored by Chempro on behalf of Ixom, which controls most of the growing sales of the chemical as industry lobby groups promote more water treatment to civic councils in New Zealand.
In addition to dangerous goods, Chempro also supplies materials to food, agriculture, and construction companies. industrial
It has depots in Auckland, and Wellington, and is enlarging its storage facility at Sockburn, Christchurch.
‘‘It will very much be business as usual, with management and staff of both firms remaining in place, and there should be little apparent change to our respective work practices,’’ Henry said.
He remains active in property investment and development, continuing to sell his subdivided properties at the Belfast Business Park, a former meatprocessing works north of Christchurch.
Henry is also rumoured to have bought the Independent Fisheries property in Heathcote, Christchurch, which he is expected to redevelop.
‘‘I have other acquisitions in my sights as well.’’ Simon Henry