The Australian water and wastewater treatment company De.mem is already reaping the rewards of its strategic acquisition of Core Chemicals, made in late 2025. According to a recent business update, the new subsidiary is performing strongly and is expected to reach its full potential in the current fiscal year, driving profit growth and opening up significant cross-selling opportunities.
Since November 1, 2025, Core Chemicals has been contributing to De.mem’s revenue, cash inflows, and margins. The 2026 calendar year marks the first full year of integration, meaning the subsidiary’s complete annual revenue and profit will now be reflected in De.mem’s financials.
Strategic Synergies and Cross-Selling
A key driver of this positive outlook is the synergy between the two companies. As CEO Andreas Kröll explained to investors, Core Chemicals’ specialty products complement De.mem’s existing portfolio. This creates powerful cross-selling opportunities:
- De.mem can now offer Core Chemicals’ products to its existing 15 gold mining customers.
- Conversely, De.mem’s diversified portfolio will be offered to Core Chemicals’ established gold mining client base.
De.mem already supplies several gold mining customers in Western Australia with specialty process chemicals (like descaling agents) and water and wastewater treatment services. The goal is to maximize gold recovery and optimize water regeneration from refinery waste—a critical application for the industry.
Geographic Expansion on the Horizon
Beyond cross-selling, the acquisition provides a clear path for geographic expansion. Core Chemicals currently operates exclusively in Western Australia. De.mem, however, already supplies gold mining customers in Tasmania, Queensland, and Papua New Guinea—markets where Core Chemicals was previously not represented.
CEO Andreas Kröll highlighted the immense potential: there are approximately 175 active gold mines in Australia, and more than 140 of them are currently not served by either company. This represents a significant growth opportunity for the combined entity.
A Strong Start to 2026
The acquisition, completed on November 1, 2025, for approximately AUD 3 million, was strategically attractive for multiple reasons. It increased De.mem’s presence in the high-growth gold mining sector, created cross-selling opportunities, and secured a perspective for geographic expansion.
Prior to the acquisition, Core Chemicals generated approximately AUD 4 million in revenue and AUD 620,000 in EBITDA.
With the full-year contribution from Core Chemicals and continued growth in the domestic water market, De.mem is confident it is well-positioned to increase profit growth and achieve new records in 2026.
Flashback: The Acquisition
In October 2025, De.mem announced the acquisition of Core Chemicals, a Perth-based specialty chemicals company. The deal was completed relatively quickly, on November 1, 2025. At the time, De.mem emphasized that the acquisition would:
- Increase its presence in the gold mining sector.
- Create cross-selling opportunities between customer bases.
- Provide a clear perspective for geographic expansion of its products.
Looking Ahead
The unfolding “Core Chemicals effect” demonstrates how a targeted acquisition can rapidly enhance a company’s market position, product portfolio, and growth prospects. For De.mem, the integration appears to be on track, with the mining sector offering a particularly fertile ground for expansion. As the company continues to leverage synergies and explore new geographic markets, 2026 promises to be a landmark year.
