SRG Global to fill out front-end service gap with ALS Asset Care

SRG Global is looking to bolster its front-end asset integrity and reliability services with the planned acquisition of ALS Industrial Pty Ltd for A$80 million ($55.3 million).

The company has entered into a binding agreement with ALS Industrial Holdings Pty Ltd, a subsidiary of ALS Ltd, to acquire 100% of the issued shares in ALS Industrial Pty Ltd (ALS Asset Care).

ALS Asset Care has market leading technical expertise in front-end asset integrity and reliability services, which complements SRG’s existing back-end maintenance expertise, SRG says. It also has a long-term, blue-chip customer base across mining, oil & gas, energy, infrastructure and the utility sectors.

“The combined group brings together two highly complementary businesses that provide significant cross selling opportunities with existing and complementary customers,” SRG said. It also accelerates SRG’s transition to recurring, annuity earnings, with some 99% of Asset Care’s expected FY 2023 revenue being maintenance related and a significant proportion contracted.

Asset Care has been operating for more than 65 years and employs over 600 people, with sites located across Western Australia, Victoria, New South Wales and Queensland, and a 70% east/30% west geographic split in Australia. It provides a broad range of services, including integrity & reliability engineering, inspection, testing, condition monitoring and certification.

Asset Care is expected to deliver FY23E revenue of A$135 million and EBITDA of A$15.4 million, prior to realising any revenue or cost synergies, SRG said.