SRG Global acquires WBHO Infrastructure in Western Australia
SYDNEY, AUSTRALIA: SRG Global Limited (ASX: SRG) has signed a Sale Implementation Deed to acquire WBHO Infrastructure Pty Ltd, WBHO Infrastructure’s Western Australian business, for a net consideration of $15.2 million.
WBHO Infrastructure is a leading provider of infrastructure asset management, civil maintenance and construction services in Western Australia, with a 35-year track record of operations.
WBHO Infrastructure (which operates the WBHO Infrastructure WA business) is a subsidiary of WBHO Australia.
Salvatore Algeri, Jason Tracy, Matthew Donnelly and David Orr (each of Deloitte) were appointed as joint and several administrators (Administrators) of each member of the Group on 23 February 2022.
WBHO Infrastructure in WA has a number of long-term, blue-chip clients, and currently services a diverse range of sectors including transport, resources, water, agriculture, waste, renewables and aviation, through a combination of recurring/ongoing maintenance and project contracts.
SRG Global and WBHO Infrastructure have a long and successful history of working together on several joint venture projects; most recently, the award-winning Ocean Reef/Wanneroo Road Interchange.
The acquisition will be complementary to SRG Global’s existing operations, expanding its asset management, civil maintenance and construction capabilities, as well as ensuring the ongoing employment for WBHO Infrastructure’s Western Australian workforce.
SRG Global Managing Director, David Macgeorge, said: “We look forward to welcoming the WBHO Infrastructure WA team to SRG Global. This acquisition will ensure minimal disruption to WBHO Infrastructure’s WA business and its clients, while helping solve one of the biggest constraints to growth in the current economic environment.
“Access to quality people is a recurring challenge for our sector. Acquiring WBHO Infrastructure will give SRG Global a competitive advantage by enhancing our capacity to deliver broader services to clients, through the addition of 275 highly skilled engineering and operational personnel.
“Importantly, our sale agreement underpins the ongoing employment of WBHO Infrastructure’s Western Australian workforce at all levels, providing certainty in an otherwise uncertain time.
“The acquisition will be funded through existing cash and equipment finance facilities and is firmly aligned with the Growth and Leadership phase of our strategy. We believe it will be EPS accretive from day one, making it fundamentally low risk in its profile, delivering value for SRG Global shareholders,” Mr Macgeorge concluded.
SRG Global is an engineering-led global specialist asset maintenance, mining services and construction group operating across the entire asset lifecycle of engineer, construct and sustain. The Company operates three segments of Asset Services, Mining Services and Construction.
About The Author
