SYDNEY: GenusPlus Group Ltd (ASX: GNP) has entered into a binding agreement to acquire 100% of the shares in Geographe Tree Services Pty Ltd (GTS) for total cash consideration of $7 million.

The acquisition will be funded from internal cash reserves.

GTS provides vegetation management services under a multi-year contract with a Tier 1 utility provider.

These services are essential to ensure the safety and reliability of the electricity network and to mitigate environmental risks.

GTS generates annual turnover of approximately $13m and the Acquisition, if completed, is expected to be immediately earnings accretive for GenusPlus.

Completion of the acquisition is subject to satisfaction of customary conditions precedent including material customer
consent and provision of management accounts to 30 November 2024.

Completion is expected to occur in early January 2025.

GenusPlus’ Managing Director David Riches commented: “I am very pleased to announce the acquisition of GTS which expands GenusPlus’ capability into vegetation management and is highly complementary with Genus’ existing
broad capabilities for power network infrastructure maintenance.

The acquisition provides recurring revenue under a multi-year contract with an existing Tier 1 customer. I would like to welcome the GTS team to the Genus family.”

Sternship Advisers acted as corporate adviser and Gilbert + Tobin acted as legal adviser to GenusPlus for the acquisition.