SYDNEY: Saunders International Ltd (ASX: SND) said on Tuesday it will acquire Victoria-based water infrastructure firm Aqua Metro Pty Ltd and its associated entities in a deal worth up to A$30 million, marking its strategic entry into the water sector.
The acquisition, subject to customary closing conditions and expected to finalize in the first quarter of fiscal 2026, will be funded through a mix of institutional placement, acquisition debt, and cash reserves. Saunders will raise A$5 million via placement, draw A$8 million from a new A$10 million debt facility with CBA, and use existing cash.
Saunders said the acquisition will be earnings-per-share accretive in FY2026, with Aqua Metro forecasting FY2025 revenue of A$102 million and EBITDA of A$8.2 million. Revenue is expected to rise to A$135 million in FY2026, with EBITDA at A$11 million.
The deal includes an upfront A$18 million payment—A$11 million in cash and A$7 million in Saunders shares. A potential earn-out of up to A$12 million may be triggered based on Aqua Metro’s EBIT performance, split between cash and additional shares.
Aqua Metro’s management team will remain in place post-acquisition, with CEO Manish Pancholi joining Saunders as EVP of the new Aqua Metro division.
Saunders said the acquisition aligns with its long-term strategy to expand multidisciplinary infrastructure capabilities and tap growth in water-sector investment.