SYDNEY, AUSTRALIA: AVADA Group Limited (ASX: AVD), a traffic management operator, has announced the acquisition of Wilsons TM Limited, the largest traffic management company in the South Island of New Zealand.
AVADA NZ Limited, a subsidiary of AVADA, has signed a binding agreement to acquire all the issued share capital of Wilsons Traffic Management, which is expected to be completed around 28 April 2023, subject to certain conditions.
The acquisition is expected to expand and diversify AVADA’s customer base and geographic reach, provide opportunities for organic growth and acquisitions in New Zealand, and generate cost synergies by integrating Wilsons and standardizing back-office operating processes. It will also offer new career opportunities for staff across the Group and its key operating markets.
Wilsons Traffic Management, established in 2020 by Sam Wilson and Gabby Krauze, reported normalised EBITDA of NZ$3.2 million for the 12 months to December 2022, derived primarily from road maintenance, civil construction, and asphalting projects. The acquisition is expected to be earnings accretive.
AVADA Group CEO and Managing Director, Mr Daniel Crowley, stated that the acquisition of Wilsons Traffic Management gives the company a solid foothold in the New Zealand market with a well-managed business that is recognized as a market leader.
The purchase price includes a cash payment on completion of NZ$9.6 million, an additional retention cash payment of between NZ$1.4 million and NZ$4.1 million, and an earn-out payment in respect of each of the first and second years after completion, subject to certain targets being achieved.
AVADA’s outlook for the second half of FY23 remains positive, based on the pipeline of infrastructure investments planned by State and Commonwealth governments in Australia and the intended addition of exposure to the New Zealand market.
The company continues to focus on improving performance and achieving cost savings by transitioning the business and new acquisitions to a centralized operating and management structure.
AVADA Group has acquired business and assets of Construct Traffic