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Gold Coast-based water utilities contractor McFadyen Group is being acquired by civil construction group Symal (ASX: SYL) for $11 million, strengthening the Melbourne-headquartered company’s presence in Queensland.
The founder-led McFadyen Group - established by Ron McFadyen in 2004 - is a civil works contracting company, providing plant hire and construction services which are expected to be earnings accretive for Symal from the first year of ownership.
Symal, which has offices in Melbourne, Newcastle and Brisbane, is a specialist in civil construction, building construction, engineering and plant hire.
The acquisition of McFadyen Group, which is expected to settle in the current quarter, has prompted the company to increase its FY26 guidance for normalised EBITDA by about $2 million to between $117 million and $127 million.
“Ron and the McFadyen team have built a strong business with trusted client relationships, a skilled workforce and a reputation for reliable delivery,” says Symal Group’s managing director Joe Bartolo.
“McFadyen was a natural fit for Symal. Their culture and values align with ours and their experienced team, strong order book and specialist fleet enhance our capabilities in resilient end markets.
“This move provides McFadyen the strength of Symal Group to expand its operations and strengthens our position in the utilities and infrastructure sector.
“It’s a clear example of how we grow with the right people, in the right spaces, and always with long-term value in mind.”
McFadyen specialises in installing and maintaining water and stormwater systems, pipeline infrastructure, sewer mains and pump stations, servicing both public and private sectors.
Symal says Ron McFadyen will continue to be involved in the business following the acquisition to ensure that “long-standing relationships in the region are effectively maintained”.
The company says McFadyen Group will strengthen its integrated contracting offering, providing “immediate entry” into the Queensland utilities market while introducing new technical capabilities in water infrastructure, stormwater, wastewater and pipeline construction.
McFadyen will also expand Symal’s existing plant-hire operations with increased capacity and a specialised, asset-backed fleet.
Symal sees the synergies between the two plant-hire operating models providing rationalisation and efficiency opportunities.
Symal plans to fund the acquisition through existing cash reserves and existing equipment financing facilities.
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