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Melbourne-based infrastructure group Symal Group (ASX: SYL) is acquiring Queensland-headquartered defence and resources contractor Shamrock Civil for an upfront consideration of $51 million, marking the company's largest acquisition to date as it positions itself to capture a slice of Australia's $425 billion decade-long defence spending pipeline.
The upfront payment comprises $40.8 million in cash and $10.2 million in Symal shares, with potential earn-out payments capped at $28.4 million that would bring the total deal value to as much as $79.4 million.
Shamrock. which was established more than 30 years ago, is a founder-led contractor delivering works across key end markets of defence, resources, utilities and infrastructure.
The company has generated average annual revenue of about $220 million over the past three years, with more than $100 million derived from defence-related work.
The company has a forecast underlying EBITDA of $16 million for FY26 on margins of around 7.3 per cent, although Symal notes the figure is a management estimate rather than formal guidance.
Shamrock's combined work-in-hand and tendered pipeline sits at $315 million, of which 70 per cent is defence work.
"Shamrock is an incredibly exciting acquisition for Symal," says Symal Group managing director Joe Bartolo.
"As well as being our most substantial acquisition to date, it encapsulates our strategic intent perfectly; culturally aligned and founder-led, geographically complementary, an acquisition that significantly enhances our exposure and capability across key geographies and growth sectors including defence and resources.
"From its Queensland base, and with a strong Northern Territory and South Australian presence, and critically with Symal's scale behind it, Shamrock will be not just ideally positioned, but capable and ready, to leverage the enormous defence investment expansion underway, as well as capitalise on the broader resources and infrastructure booms.”
Shamrock's founders will remain with the business following completion.
The earn-outs are payable at four times EBITDA above a threshold, split 80 per cent cash and 20 per cent scrip.
Of the upfront amount, $16.1 million is deferred pending the resolution of an undisclosed commercial and legal matter expected to be settled by late 2026.
Symal says the upfront total may reduce but cannot exceed $51 million, with the deal also subject to ACCC approval.
The acquisition is the fourth bolt-on deal Symal has struck since listing on the ASX, building on a rapid consolidation strategy that has seen the group assemble a national civil infrastructure platform.
The news comes six months after Symal snapped up Queensland-based Timms Group and L&D Contracting for $28 million and Davison Earthmovers for $23.2 million in December last year, following its $11 million acquisition of McFadyen Group in September 2025.
Shamrock operates across northern and central Queensland, delivering civil earthworks, road construction and maintenance services to defence clients including the Department of Defence and major contractors.
The company has established a presence on key military installations and benefits from long-standing relationships in a sector where security clearances and site familiarity create meaningful barriers to entry.
Symal has tightened its standalone FY26 normalised EBITDA guidance to a range of $120 million to $126 million, up from the $117 million to $127 million range flagged in February this year.
The deal deepens Symal's exposure to the defence sector at a time when the Australian government has committed to sustained increases in military spending.
The $425 billion defence pipeline stretching over the next decade encompasses base upgrades, new facilities and supporting infrastructure across northern Australia, a region where Shamrock has an established operational footprint.
Shares in Symal Group closed 8 per cent higher at $2.92 today.
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