Contractor SRG Global swoops on Sydney utilities outfit with 750 staff for $111 million

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Contractor SRG Global swoops on Sydney utilities outfit with 750 staff for $111 million

SRG Global will pay $111 million to buy Sydney-based utilities infrastructure builder Diona as the contractor turns another profit and eyes further growth in water and energy transition markets.

Among the raft of WA contractors delivering full-year results on Tuesday, SRG reported a $34.4 million net profit for 2024, buoyed by 32 per cent higher revenues of just over $1 billion.

SRG noted earlier in the year that the company had a strong enough balance sheet to keep an eye on potential additions, which has been followed up by the acquisition of Diona, announced on Tuesday.

The Subiaco-based engineering, maintenance and mining contractor will pay $111m for the Sydney-headquartered business, which builds pipelines and storage systems for water and gas networks in most States outside of WA.

Diona has about 750 staff and largely services government agencies and utilities.

To fund the buy SRG is raising $60 million via a fully-underwritten capital raising and a $6m share purchase plan. The rest will be drawn down from new debt.

SRG has bumped up its earnings guidance to about $125m for FY25 and has about $3b worth of work in hand.

Mr MacGeorge said in May that SRG was keen to grown on its own, but had a strong enough balance sheet to keep an eye potential additions to the business in the coming years.

SRG shares last changed hands at 86¢.

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