SYDNEY, AUSTRALIA: Maas Group Holdings Limited (ASX:MGH) has announced that it has agreed to acquire 75% of the issued share capital of the Austek group of companies (Austek), a leading provider of asphalt repairs, road maintenance and rehabilitation, and spray seal services.
Austek Asphalt was founded in 2010 as a small asphalt bobcat business in North Brisbane and has since grown to become a large asphalt services business with approximately 100 employees, servicing the Brisbane and Gold Coast markets, as well as regional areas of Queensland.
Austek’s innovative sustainable asphalts, Carbonphalt and Carbonmastic, made with recycled waste tyre products, have been highly acclaimed in the industry.
The transaction is expected to complete in May 2023 and is subject to various third-party consents and customary completion conditions. The remaining 25% of Austek Asphalt will be held by Peter Ozoux, one of the original founders, and the current Managing Director. Peter will continue in his role post acquisition.
The consideration for the acquisition is $39.0m in cash, with further consideration of up to $11.25m payable contingent on Austek achieving certain EBIT targets for the financial years ended 30 June 2023 and 30 June 2024. 50% of the Contingent Consideration will be payable as shares in MGH, determined at the 5-day VWAP at completion. These shares will be issued in three equal tranches annually for the three years post the release of MGH’s 30 June 2024 financial results.
MGH Managing Director and CEO Mr Wes Maas said that the acquisition represents an important expansion of their construction materials capability, and he is excited by the potential of this business. MGH is a leading independent Australian construction material, equipment and service provider with diversified exposures across the civil, infrastructure, mining and real estate end market.
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