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Diversified infrastructure services provider SRG Global (ASX: SRG) rode a wave of investor enthusiasm on the share market today after taking a deeper dive into the marine sector via an $85 million buyout of Freemantle-based Total AMS (TAMS).
Shares in the Perth-headquartered SRG Global closed at a record high of $2.65 this afternoon, up 29 per cent, following news of the acquisition which will add $600 million to SRG’s workbook and deliver a pipeline of more than $3 billion in opportunities to the group.
TAMS, which has a workforce of more than 500, is a major player in the marine infrastructure sector, providing full-lifecycle asset services to port authorities, resources, energy and logistics clients under long-term services agreements.
The deal adds a “highly complementary capability” to SRG Global’s existing business with a sole-source, end-to-end marine infrastructure service offering.
It also positions SRG as a leading provider of marine infrastructure services spanning design, construction, remediation and ongoing maintenance.
Over a full year of ownership, TAMS is expected to deliver SRG Global pro forma FY26 revenue of $200 million, EBITDA of $35 million and EBIT of $30 million.
This compares with SRG Global’s FY25 revenue of $1.3 billion, which was up 24 per cent, and underlying EBITDA of $127.1 million, up 29 per cent.
Managing director David Macgeorge describes the deal as transformational for SRG as it also furthers the group’s ambitions to create a business with more than 80 per cent of earnings sourced from recurring income.
“TAMS is a leading end-to-end delivery partner with unparalleled self-perform capability through long-term relationships with resources, energy and government clients,” says Macgeorge
“TAMS is complementary to SRG Global’s service offering in key growth markets and geographic locations; and will further enhance our strong track record of cross-selling our end-to-end services.”
The acquisition has been struck on an EBITDA multiple 2.7x, based on FY26 earnings, and is expected to be 25 per cent accretive on an earnings-per-share basis before taking into account potential synergies.
“TAMS comes with a high-quality management team and workforce with a proven track record of delivering for clients through long-term, collaborative marine infrastructure and asset lifecycle services agreements and further embeds our transformation to a business with a profile of 80 per cent annuity/recurring earnings in line with SRG Global’s long-term strategy,” says Macgeorge.
“We acknowledge the expertise and professionalism of TAMS’s people and the significant amount of work undertaken to grow the business into the market leader it is today.”
SRG Global plans to fund the $85 million acquisition with $57.3 million in cash from existing reserves and debt facilities, as well as $27.7 million in shares at a discounted issue price of $1.99 per share.
The deal also comes with a two-year earn-out comprising 100 per cent of TAMS’ annual EBITDA above $30 million and below $40 million, and 50 per cent of TAMS’ annual EBITDA above $40 million.
The TAMS acquisition follows a $111 million deal by SRG Global for Sydney-based asset management services group Diona last year, a move that bolstered the group’s presence on the east coast and added $1billion of work in hand to its portfolio.
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