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- SRG Global (SRG) buys WA-based WBHO Infrastructure out of voluntary administration for $15.2 million, paid in existing cash and equipment finance facilities and fully asset backed
- The acquisition is said to be complementary to SRG’s existing operations and will ensure ongoing employment for WBHO’s 275 skilled engineering and operational workers, including its management team
- The deal comes after the South African company pulled out of Australia, citing Australia’s “hardline” COVID-19 policy impacting its business
- Completion of acquisition is expected by end March 2022
- SRG shares are up 6.54 per cent, trading at 57 cents
SRG Global (SRG) has bought WBHO Infrastructure out of voluntary administration for $15.2 million, paid in existing cash and equipment finance facilities and fully asset backed.
Acquisition of the WA-based company is said to be complementary to SRG’s existing operations, expanding its asset management, civil maintenance and construction capabilities, and will ensure ongoing employment for WBHO’s 275 skilled engineering and operational workers, including its management team.
“This acquisition will ensure minimal disruption to WBHO Infrastructure’s WA business and its clients, while helping solve one of the biggest constraints to growth in the current economic environment,” said SRG Global Managing Director David Macgeorge.
“Access to quality people is a recurring challenge for our sector.
“Acquiring WBHO Infrastructure will give SRG Global a competitive advantage by enhancing our capacity to deliver broader services to clients, through the addition of 275 highly skilled engineering and operational personnel”.
The deal comes after the South African company pulled out of Australia, citing Australia’s “hardline” COVID-19 policy impacting its business.
This meant financial support was also dropped for one of the country’s largest builders, Probuild.
WBHO has historically generated approximately $150 million or revenue per annum and has a track record of positive earnings and growth.
SRG Global and WBHO Infrastructure have collaborated on several joint venture projects, including the Ocean Reef/Wanneroo Road Interchange.
Herbert Smith Freehills acted as legal adviser and PwC acted as financial and tax advisers to SRG.
Completion of the acquisition is expected by the end of March 2022.
SRG shares are up 6.54 per cent, trading at 57 cents at 2:10 am AEDT.
