PERTH: SRG Global Ltd (ASX: SRG) announced Wednesday it has entered into a binding agreement to acquire 100% of Total AMS Pty Ltd (TAMS), a leading marine infrastructure services provider, for $85 million.
The acquisition, structured on a cash-free, debt-free basis, is expected to be significantly accretive to SRG Global’s earnings. The deal implies a forward EBITDA multiple of 2.7x and is forecast to be approximately 25% accretive to FY26 earnings per share before synergies.
TAMS provides end-to-end design, engineering, construction, and maintenance services for port and marine infrastructure, operating for over 25 years with a workforce of more than 500. The company is projected to deliver pro forma FY26 revenue of $200 million, with EBITDA of $35 million and EBIT of $30 million.
SRG Global plans to fund the acquisition through a combination of $57.3 million from existing cash and debt facilities and $27.7 million in SRG shares issued to the vendors. The share component, priced at $1.99 per share based on the recent volume-weighted average price, will be escrowed for two years. The deal also includes a two-year earn-out opportunity for the vendors based on TAMS’s future EBITDA performance.
David Macgeorge, Managing Director of SRG Global, described the acquisition as “transformational,” highlighting TAMS’s market-leading position, long-term client relationships in resources, energy, and government sectors, and its complementary capabilities.
The acquisition strengthens SRG Global’s strategic shift towards recurring revenue, with the combined group expected to derive over 80% of its earnings from annuity-style contracts. TAMS contributes approximately $600 million of work in hand and access to a potential pipeline exceeding $3 billion.
Completion of the acquisition is anticipated around October 31, 2025. SRG Global will host an investor briefing at 8:00 AM WST today to discuss the details.