Lindsay Australia’s $108.2M Deal for SRT to Boost FY25 EPS by 15%
Lindsay Australia has announced the acquisition of Tasmania’s leading refrigerated logistics provider, SRT Logistics, for $108.2 million, marking a strategic expansion into the Tasmanian and Trans Bass Strait markets. The deal is expected to boost Lindsay’s FY25 earnings per share by approximately 15%.
- Acquisition of 100% of SRT Logistics for $108.2 million cash-free, debt-free
- SRT to operate as a wholly owned subsidiary with key management retained
- Funding via $30.2 million in scrip and $57.2 million cash through existing debt facilities
- Expected ~15% EPS accretion for Lindsay Australia in FY25 on a pro forma basis
- SRT CEO Robert Miller to join Lindsay Australia’s board post-completion
Strategic Expansion into Tasmania
Lindsay Australia Limited has taken a decisive step to broaden its national footprint by acquiring SRT Logistics Pty Ltd, Tasmania’s largest refrigerated supply chain provider. The $108.2 million transaction, structured on a cash-free, debt-free basis, positions Lindsay as a truly national player in refrigerated transport and logistics, connecting Tasmania’s unique market with mainland Australia.
SRT Logistics, founded in 1996 and family-owned until now, boasts a comprehensive multi-modal transport network servicing every town in Tasmania weekly without reliance on third-party forwarders. Its operations extend across Victoria, New South Wales, and Queensland, with a strong presence in Trans Bass Strait refrigerated shipping, a critical link between Tasmania and the mainland.
Financial and Operational Highlights
The acquisition consideration includes approximately $30.2 million paid in Lindsay shares and $57.2 million in cash funded through Lindsay’s existing debt facilities. Post-acquisition, SRT’s management team, including CEO Robert Miller, will remain in place, ensuring continuity and operational stability. Miller will also join Lindsay’s board, bringing nearly three decades of industry experience and deep regional knowledge.
Financially, SRT is forecast to deliver around $137.6 million in revenue and $14.6 million in earnings before interest and tax (EBIT) for FY25 on a pre-accounting standard basis. Lindsay anticipates the deal will be accretive to earnings per share by approximately 15% in FY25 on a pro forma basis, excluding synergy realisation costs. The acquisition multiple stands at about 7.4 times forecast EBIT, reflecting a disciplined valuation approach.
Strategic Rationale and Growth Prospects
The acquisition aligns with Lindsay’s “Grow the Network” strategy, extending its refrigerated transport services into a high-growth Tasmanian market supported by a robust agricultural sector. Tasmania’s agri-food industry has demonstrated strong growth, with an 8% compound annual growth rate over five years, underpinning demand for reliable refrigerated logistics.
Integrating SRT’s network with Lindsay’s existing mainland operations creates a seamless national refrigerated supply chain solution, enhancing service offerings and operational resilience. The combined entity is expected to benefit from improved equipment utilisation, procurement efficiencies, and cross-pollination of industry relationships, positioning Lindsay for further growth opportunities.
Guidance and Next Steps
Lindsay Australia has reaffirmed its FY25 underlying EBITDA guidance of $80.0 million to $82.5 million, excluding contributions from SRT. Completion of the acquisition is anticipated by 30 June 2025, subject to customary conditions precedent. Investors will be watching closely for integration progress and synergy realisation in the coming months.
Bottom Line?
This acquisition marks a pivotal moment for Lindsay Australia, setting the stage for a stronger national presence and enhanced shareholder value as it integrates Tasmania’s refrigerated logistics leader.
Questions in the middle?
- How quickly can Lindsay realise operational synergies and cost efficiencies post-acquisition?
- What impact will the acquisition have on Lindsay’s net leverage and credit metrics beyond FY25?
- How will SRT’s integration influence Lindsay’s competitive positioning in mainland markets?
