Telecommunications infrastructure company GenusPlus Group is set to acquire private Queensland business Pole Foundations Australia for an upfront $22 million in cash and shares.
Genus announced today it had entered a binding purchase agreement to acquire 100 per cent of the electrical pole inspection and reinforcement services business from entities associated with Principals Brett Fraser and Chris Rankine.
The business was founded in 1992 and has approximately 40 staff with operations in Queensland, New South Wales, Australian Capital Territory and Tasmania.
According to Genus, the deal provides it with the ability to become a “full-cycle” service provider to utilities across pole inspection, maintenance and replacement.
Consideration will comprise $16.5 million in cash and about $5.5 million Genus shares.
Pole Foundations principals are also set to receive a series of contingent cash earn-out payments subject to certain milestones.
These include $3 million subject to achieving FY22 EBITDA of $6.175 million, $7 million subject to EBITDA of $9.8 million in FY23 and $9 million for FY24 EBITDA of $12.25 million.
Genus managing director David Riches said PFA was a highly strategic transaction for Genus.
“This transaction expands Genus’ capability into a highly specialised service for Tier 1 customers, allowing Genus to provide a full lifecycle service offering across pole inspection, reinforcement, and replacement,” Mr Riches said.
“We are very excited to leverage the complementary service offering, customer base, and expertise of the team, to continue to drive growth of the business and ultimately shareholder value.”
