MOUNT WAVERLEY: The Environmental Group Limited (ASX: EGL) announced Monday it has agreed to acquire Australian industrial boiler service and manufacturing business Advanced Boilers & Combustion Pty Ltd for $5.5 million in cash. The deal is expected to close April 5.
The acquisition expands EGL’s capabilities in the industrial boiler sector, adding Advanced’s expertise in fabrication, economizers and control panels, as well as exclusive rights to Maxitherm boiler technology. Advanced reported $16 million in revenue and $1.6 million in normalized EBITDA for fiscal 2024, with 60% of its revenue coming from recurring service contracts.
“This strategic acquisition aligns with our growth plans and strengthens our position in sustainable industrial solutions,” said Andrew Bush, EGL’s chief financial officer.
Advanced, founded in 2006, serves clients in food and beverage, paper manufacturing, hospitals and meat processing. Its founders will remain in key roles post-acquisition.
EGL, which focuses on environmental technologies, will fund the deal from existing cash reserves. The company also secured additional banking facilities to support future growth.