Maas Group launches capital raising for triple acquisition
Make us a preferred source
Make us a preferred source on Google
The news: Maas Group has agreed to acquire three construction material companies worth a combined $252 million, and launched a capital raising to partially fund the deals.
The numbers: The construction materials and equipment services company will acquire a 100% interest in Cleary Bros for $172 million, a 75% stake in Capital Asphalt, and a 100% holding in a freehold hard rock quarry and associated business assets in greater western Melbourne.
The acquisitions include three hard rock and sand quarries, three concrete batch plants, and an asphalt plant. The companies generated a combined underlying EBITDA of $29 million during FY24 and are expected to deliver between $34 million and $38 million in underlying EBITDA in FY25.
Maas Group will raise up to $138 million via a capital raising, comprising a $100 million institutional placement, a $28 million conditional placement for certain company directors, executives and founding shareholders, and a $10 million share purchase plan for eligible Australian and New Zealand shareholders.
Maas chief executive Wes Maas is expected to commit $25 million to the conditional placement.
The company also confirmed guidance for FY25 of underlying EBITDA between $215 million and $245 million, excluding any contribution from the acquisitions, with the first half expected to contribute around 40% of the full-year total.
The context: Maas Group said the acquisitions are expected to be "low to mid single-digit" earnings-per-share accretive on a pro forma FY25 basis, excluding any potential synergies.
The company noted that the new assets will provide the opportunity for strategic expansion into key growth corridors, including the Illawarra region and access option to the greater Sydney market.
The acquisitions are expected to complete before the end of the Q3 FY25.
The sources: ASX announcement, ASX announcement
