PERTH: Macmahon Holdings Limited said Friday it has agreed to acquire 100% of Aspect Engineering Solutions Pty Ltd in a deal valuing the engineering and minerals processing firm at A$75 million, as the ASX-listed mining services contractor moves to broaden its reach across the mining value chain.

The company, which trades under the ticker MAH, said it executed a Share Purchase Agreement for Aspect and its associated subsidiaries. The acquisition adds front-end and detailed engineering, project delivery, minerals processing, and operations and maintenance capabilities to Macmahon’s existing surface mining, underground mining and civil infrastructure businesses.

Macmahon said the deal supports its FY27-FY31 growth strategy and represents a further opportunity to expand through mergers and acquisitions, citing its strong balance sheet.

Aspect generated approximately A$75 million in revenue and A$15.2 million in earnings before interest and tax in fiscal year 2026, based on unaudited figures as of June 30. The Perth-based company employs more than 295 people directly and serves more than 50 active clients across the resources, infrastructure and energy sectors, including lithium, gold, iron ore, industrial processing and energy infrastructure work. Its operations are supported by a licensed engineering and support hub in Vietnam.

As of May 31, Aspect had about A$66.6 million in contracted backlog and an unweighted pipeline of roughly A$225.8 million, the company said.

The A$75 million headline enterprise value equates to approximately 5.0 times Aspect’s fiscal 2026 EBIT, well below Macmahon’s own trading multiple of 11.4 times EV/EBIT as of June 30, according to the announcement.

Macmahon said the deal is structured to be paid out over five years. It includes an initial cash payment of A$30 million at completion, subject to standard net working capital adjustments, plus yearly retention payments of A$6 million for five years totaling A$30 million. Additional earn-out payments of A$15 million to A$30 million are tied to performance hurdles over three to five years, depending on whether base case or outperformance targets are met.

The company said the transaction will be funded from existing cash reserves and is expected to be accretive to underlying earnings per share from inception, with indicative accretion of about 6.2% before accounting for synergies. Macmahon estimated a base case internal rate of return of 40.4% on a pre-synergies basis.

Macmahon said it may, at its discretion, choose to pay future retention and earn-out amounts in company shares rather than cash, with any share issuance priced using a volume-weighted average price over the 30 trading days before payment.

The company plans to operate Aspect as a standalone business, retaining its brand, leadership team and workforce while gradually integrating Macmahon’s governance, systems, project controls and workforce support functions. Completion is subject to customary conditions, including regulatory clearances, and is expected within the current calendar year.

“I’m delighted to welcome Aspect Engineering into the Macmahon Group,” Managing Director and CEO Michael Finnegan said in a statement. He said the acquisition was “an important step” in Macmahon’s push to become a more comprehensive service provider across the mining value chain, and called the deal “attractive on a standalone basis,” adding it also provides a platform to accelerate the company’s minerals processing service offering.

Macmahon is an ASX-listed company providing mining and civil infrastructure services across Australia, New Zealand and Southeast Asia.