PERTH: GenusPlus Group Limited (ASX: GNP) announced it has entered a binding agreement to acquire 100% of MGC Group Holdings (WA) Pty Ltd, a Western Australia-based provider of safety-critical rail systems.
The acquisition includes entities associated with MGC principals Chris Newton and Mark Byrne.
MGC specializes in overhead line equipment, signaling, electrical, and communications systems for Tier 1 clients. The company employs over 100 skilled professionals and reported an unaudited normalized EBITDA of A$4 million for FY24.
GenusPlus Managing Director David Riches highlighted the strategic importance of the acquisition. “MGC provides us with a significant entry into the rail sector, offering complementary skillsets and services that will enhance our customer offerings,” Riches said. “We are excited to welcome MGC’s talented team to the Genus family as we work together to drive business growth.”
MGC co-founder Chris Newton expressed enthusiasm for the partnership. “We’ve found the perfect home for MGC, which will strengthen our industry presence and expand our services for clients,” Newton said.
The deal includes an upfront payment of A$10.25 million, subject to customary adjustments, and potential contingent earn-out payments up to A$10.5 million through CY27, depending on EBITDA performance. GenusPlus will also acquire a 20% stake in Rail Science Labs Pty Ltd, an early-stage entity majority-owned by MGC principals.
The acquisition is expected to bolster GenusPlus’ capabilities in delivering specialized rail solutions to its clients.