SRG Global Limited completed the acquisition of ALS Industrial Pty Ltd from ALS Industrial Holdings Pty Ltd.
March 28, 2023
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SRG Global Limited (ASX:SRG) entered into a binding agreement to acquire ALS Industrial Pty Ltd from ALS Industrial Holdings Pty Ltd for AUD 80 million on February 15, 2023. The purchase price of AUD 80 million paid on a cash-free, debt-free and normal level of working capital basis. The purchase price is AUD 80 million, comprising AUD 70 million on completion and a AUD 10 million payment upon execution of the SPA. SRG is undertaking a fully underwritten institutional placement of approximately 64.4 million new fully paid ordinary shares (?New Shares?) to raise AUD 46.4 million (before costs) at an issue price of AUD 0.72 per New Share. It is intended that the SPP raise up to AUD 5 million and it is not underwritten. SRG intends to fund the acquisition via a combination of Up to AUD 51.4 million in equity raised via a fully underwritten institutional placement for AUD 46.4 million and a non-underwritten Share Purchase Plan (?SPP?) for up to AUD 5 million. AUD 30 million drawn from a new secured term loan with National Australia Bank; and Existing cash on hand as at December 31, 2022. SRG retains the right to accept oversubscriptions or to scale back applications at its absolute discretion. New Shares issued under the SPP will rank equally with existing SRG shares from the date of issue. The transaction is expected to complete by February 28, 2023. The Acquisition Price implies an FY23E EBITDA multiple of 5.2x1 and is expected to be accretive to FY23E EPS(A) basis prior to realising any revenue or cost synergies and is expected to be accretive to margins. Bank of America Corporation (NYSE:BAC) acted as financial advisor to ALS Industrial Holdings Pty Ltd. DAVID GRAY, Charlotte Cameron and HANNAH KIM of Herbert Smith Freehills acted as a legal advisor to SRG Global Limited. BofA Securities, Inc. acted as financial advisor to ALS Industrial Holdings Pty Ltd.
SRG Global Limited (ASX:SRG) completed the acquisition of ALS Industrial Pty Ltd from ALS Industrial Holdings Pty Ltd on March 29, 2023. The proceeds from the transaction have been incorporated into ALS Limited?s capital management framework, underpinning the strong balance sheet and re-allocating capital to higher growth end market opportunities.
SRG Global Limited is an Australia-based diversified industrial services company. The Company operates through three segments: Asset Maintenance, Mining Services, and Engineering and Construction. The Asset Maintenance segment consist of supplying integrated services to customers across the entire asset life cycle. Services provided span multiple sectors, including oil and gas, energy, infrastructure, offshore, mining, power generation, water treatment plants, commissioning, decommissioning, shutdowns, and civil works. The Mining Services segment services mining clients and provides comprehensive ground solutions, including production drilling, blasting, and ground and slope stabilization. The Engineering and Construction segment consist of supplying integrated products and services to customers involved in the construction of complex infrastructure. These include bridges, dams, office towers, high rise apartments, shopping centers, hotels, car parks, and recreational buildings.
SRG GLOBAL LIMITED 
