SRG Global’s Bold $85M Bet on Marine Infrastructure Carries Integration Risks
SRG Global has agreed to acquire marine infrastructure leader TAMS for $85 million, aiming to enhance its recurring revenue and expand its market footprint. The deal is expected to deliver a 25% EPS accretion in FY26, marking a strategic step in SRG’s growth trajectory.
- SRG Global to acquire 100% of TAMS for $85 million
- Deal implies FY26 EBITDA multiple of 2.7x and EBIT multiple of 3.2x
- Expected circa 25% EPS accretion for FY26 pre-synergies
- Acquisition funded by cash, debt facilities, and equity issuance
- TAMS brings $600 million Work in Hand and $3 billion opportunity pipeline
Strategic Acquisition in Marine Infrastructure
SRG Global Ltd (ASX – SRG) has announced a binding agreement to acquire Total AMS Pty Ltd (TAMS), a well-established leader in marine infrastructure services, for $85 million on a cash-free, debt-free basis. This move significantly broadens SRG Global’s service offering and geographic reach, positioning the company as a dominant player in the marine infrastructure sector.
TAMS, with over 25 years of experience and a workforce exceeding 500 skilled professionals, specializes in design, engineering, construction, maintenance, and remediation services for critical port and marine infrastructure. The acquisition complements SRG Global’s existing end-to-end asset lifecycle capabilities, creating a combined entity with enhanced cross-selling potential and a diversified client base spanning resources, energy, transport, water, and defence sectors.
Financial Impact and Funding Structure
The deal is priced at an attractive FY26 EBITDA multiple of 2.7x and EBIT multiple of 3.2x, with pro forma FY26 revenue expected to reach approximately $1.65 billion and EBITDA around $175 million. Importantly, the acquisition is forecast to be around 25% accretive to FY26 earnings per share before synergies, signaling a strong value proposition for SRG shareholders.
Funding for the acquisition will come from a combination of $57.3 million in existing cash and debt facilities, $27.7 million in newly issued SRG Global shares to the vendors (escrowed for two years), and a two-year earn-out arrangement tied to TAMS’ EBITDA performance. This capital-light approach aligns with SRG’s strategy of maintaining a robust balance sheet while pursuing growth.
Strategic Rationale and Growth Outlook
SRG Global’s Managing Director, David Macgeorge, described the acquisition as transformational, highlighting TAMS’ market leadership and complementary capabilities. The deal is expected to embed SRG Global’s transition towards a business model with over 80% recurring, annuity-style earnings, supported by long-term collaborative agreements and a substantial $600 million Work in Hand alongside a $3 billion opportunity pipeline.
The combined group is well-positioned to capitalize on growth opportunities across multiple sectors, leveraging TAMS’ strong client relationships and operational expertise. The acquisition also enhances SRG Global’s EBITDA margins and strengthens its strategic footprint in marine infrastructure services, a sector with attractive long-term prospects.
Next Steps and Market Implications
Completion of the acquisition is anticipated around 31 October 2025, with SRG Global providing updated FY26 guidance that includes an eight-month contribution from TAMS. Market watchers will be keen to observe how the integration unfolds and whether the anticipated synergies and cross-selling opportunities materialize as projected.
Overall, this acquisition marks a significant milestone in SRG Global’s growth strategy, reinforcing its position as a diversified infrastructure services provider with a strong marine infrastructure presence.
Bottom Line?
SRG Global’s acquisition of TAMS signals a decisive push into marine infrastructure, setting the stage for enhanced earnings and strategic growth.
Questions in the middle?
- How effectively will SRG Global integrate TAMS’ operations and culture?
- What synergies and cost savings can realistically be expected post-acquisition?
- How will the market respond to the increased gearing and equity issuance?
