MELBOURNE: GenusPlus Group Ltd. said Monday it has agreed to acquire MPC Kinetic Holdings Pty Ltd. for up to 400 million Australian dollars, a move the company described as transformational and highly accretive to earnings.
The binding share purchase agreement will see Genus acquire 100% of MPC Kinetic, a leading provider of gas gathering, well maintenance and construction services for renewable energy and major pipeline projects in Australia, a statement said.
Genus will pay an upfront cash consideration of A$325 million, a deferred cash consideration of A$25 million payable six months after completion, and an earn-out of up to A$50 million if MPC Kinetic achieves a fiscal 2027 EBIT target of A$70 million.
The acquisition implies a multiple of 4.3 times fiscal 2027 EBITDA and 5.7 times fiscal 2027 EBIT, assuming the top end of the earn-out target is achieved, Genus said.
“The acquisition of MPK will be transformational for Genus,” Managing Director David Riches said in a statement. “MPK is a high-quality business with a strong management team, blue-chip client base, and significant potential.”
The deal diversifies Genus into the gas and water sector and combines MPC Kinetic’s pipeline and civil capabilities with Genus’ electrical capabilities, allowing the combined entity to self-perform civil and electrical balance-of-plant scopes for renewable projects.
In fiscal 2025, MPC Kinetic generated audited revenue of A$533 million, EBITDA of A$104 million and EBIT of A$83 million. Based on unaudited management accounts through March 31, 2026, Genus expects MPC Kinetic to generate fiscal 2026 revenue of A$547 million, EBITDA of A$116 million and EBIT of A$95 million.
Genus plans to fund the upfront consideration through an equity raise of up to A$200 million, drawdowns under an upsized debt facility, existing cash reserves and operating cash flows. The company has upsized its existing revolving syndicated facility from A$429 million to A$549 million.
Completion is subject to conditions including the equity raising of no less than A$200 million, change-of-control consents on material contracts and approval or waiver from the Australian Competition and Consumer Commission.
Completion is indicatively anticipated for July 1, 2026.
Genus has taken out warranty and indemnity insurance for customary warranties and indemnities provided by the sellers, with sole recourse to the policy subject to limited exceptions including fraud.
MPC Kinetic Managing Director Adam Machon said the two companies are “ideologically alike but with complementary services capability.”
“This acquisition presents an opportunity for the folks at MPK to continue to grow from a place of certainty and a platform where we can continue to support our valuable client base,” Machon said.
Genus shares are expected to resume trading on the Australian Securities Exchange on May 19 following the announcement of the placement results.
Bell Potter Securities Ltd. and Euroz Hartleys Ltd. are acting as joint lead managers for the placement, with MA Moelis Australia as co-manager.
The company advised that the announcement is not an offer of securities in the United States and the securities have not been registered under the U.S. Securities Act of 1933.
