Symal Group Limited (ASX: SYL), a company specialising in civil infrastructure and offering services such as contracting, plant and equipment hire, and remediation, has entered into an agreement to acquire 100% of Locale Civil Pty Ltd. The acquisition, expected to complete in Q1 FY26, is valued at up to $35 million.
Locale Civil holds a minimum six-year civil works agreement with Power Network Services to deliver civil infrastructure services to Powercor and CitiPower. This agreement guarantees a minimum of $230 million in recurring revenue over the initial contract term, with a guaranteed minimum operating margin. The purchase consideration includes $29.3 million in upfront cash and an additional $5.7 million earn-out payment contingent upon Locale achieving its FY26 earnings target. Symal forecasts $8 million in normalised EBITDA from Locale in FY26, with the acquisition expected to be EPS accretive from the first year.
According to Symal, the acquisition is a strategic move to add specialised utility civil capabilities and strengthen the company’s ability to win larger integrated contracts. Managing Director Joe Bartolo stated that the acquisition supports Symal’s strategic objectives of deepening its presence in the utilities sector and building recurring revenue streams. He also highlighted Locale’s guaranteed work-in-hand pipeline and strong EBITDA margins as factors that will strengthen Symal’s earnings profile.
The acquisition will be funded through available cash balances. Symal will host its FY25 Financial Results webinar on Tuesday, 26 August. The company welcomes Locale’s management team and employees, including General Manager Cameron O’Shea, to ensure a seamless integration and business continuity.
