SYDNEY: Lindsay Australia Limited (ASX: LAU) announced Tuesday it will acquire Tasmania’s largest refrigerated logistics provider, SRT Logistics Pty Ltd, for approximately $108.2 million in a deal aimed at expanding its national supply chain footprint.
The acquisition, expected to close June 30, 2025, will be funded through a mix of cash and scrip, with SRT vendors receiving $57.2 million in cash and $30.2 million in Lindsay shares. SRT’s CEO, Robert Miller, will join Lindsay’s board as an executive director post-completion.
SRT Logistics, founded in 1996, specializes in refrigerated transport, cross-docking and Trans Bass Strait shipping services, serving Tasmania’s agriculture and food sectors. The deal provides Lindsay with entry into Tasmania’s high-growth market and complements its existing operations in mainland Australia.
“This acquisition aligns with our strategy to grow the network and create a truly national refrigerated transport offering,” said Lindsay CEO Clay McDonald.
Financial Highlights
– The transaction values SRT at 7.4 times its forecast fiscal 2025 earnings before interest and taxes (EBIT) of $14.6 million.
– The deal is expected to boost Lindsay’s fiscal 2025 earnings per share by 15% before synergies.
– Post-acquisition net leverage will remain at 1.9 times EBITDA, within Lindsay’s target range.
SRT will operate as a wholly owned subsidiary, retaining its management team. Lindsay confirmed its fiscal 2025 EBITDA guidance of $80 million to $82.5 million, excluding the acquisition’s impact.