MELBOURNE: Symal Group Ltd. (ASX: SYL) announced Thursday it has entered into a binding agreement to acquire 100% of Locale Civil Pty Ltd, a move aimed at strengthening its position in Australia’s utility civil infrastructure sector.
The acquisition, valued at up to A$35 million, includes an upfront cash payment of A$29.3 million and a deferred earn-out of A$5.7 million contingent on Locale meeting its FY26 earnings target. Completion is expected in the first quarter of FY26.
Locale, a 50%-owned subsidiary of Power Network Services, holds a minimum six-year civil works agreement to deliver infrastructure services to Powercor and CitiPower. The contract guarantees at least A$230 million in recurring revenue over its initial term, with potential for extension.
Symal forecasts an EBITDA uplift of approximately A$8 million in FY26 from the acquisition, which is expected to be earnings-per-share accretive from year one. The deal aligns with Symal’s strategy to deepen its utility sector footprint and pursue larger integrated contracts.
“This acquisition is a significant milestone for Symal,” said Managing Director Joe Bartolo. “Locale brings a guaranteed pipeline, strong margins, and a long-standing partnership with an investment-grade client. It enhances our scale and capability to target national opportunities.”
Locale’s management team, including co-founder and General Manager Cameron O’Shea, will join Symal to ensure seamless integration and continuity across its program of works.
Symal will host its FY25 financial results webinar on Tuesday, Aug. 26 at 10 a.m. AEST.