While Digga chief executive Suzie Wright would not reveal the amount involved, CIN understands Kanga had considerable debts, with Digga being one of Kanga’s biggest creditors. Wright told CIN that Kanga was down to 12 permanent staff from approximately 150 a year ago. “We have salvaged jobs for about 30 staff, so we’ve re-employed more and we’re hoping to create another 10 to 15 jobs as we get the product line back up and operational again,” she said. Wright said the deal had been in the pipeline for only four weeks. “The company was in financial trouble and they were our fourth largest client,” she said. “For us, we didn’t want to lose those sales, or worse still, see it go to an offshore company and lose the business. It was a strategic decision from that basis.” Digga said in statement today that Kanga’s key personnel would be transferred to the appropriate Digga departments in Brisbane, Sydney and Melbourne. Kanga’s operations in Canberra will remain in place with staff reporting to the Digga Sydney offices. Digga said it is planning to grow the Kanga product line and market it through a growing worldwide dealer network. The spare parts and service departments of both companies will be merged under a new arm of the Digga group to be called Digga Spares & Service. This division will service both the current and new dealer network of both companies throughout Australia for machinery loaders and attachments. Digga said the range of mini-loader attachments, currently available from the Kanga line, will be brought under the Digga Attachments division, providing an extended range to the Digga dealer network. Brisbane-based Digga claims to be Australia’s largest manufacturer and exporter of gearboxes and machinery attachments such as auger drives, trenchers, augers, brooms and wear parts for the earthmoving machinery industry.
