Saunders Finalises $30M Aqua Metro Deal to Expand Water Sector Reach

Strategic Acquisition Completed

Saunders International Limited (ASX – SND) has officially completed its acquisition of Aqua Metro, a prominent Victorian water industry delivery partner, on 14 October 2025. This move follows the initial announcement in July and represents a significant step in Saunders’ long-term strategy to deepen its footprint in the water sector, a key growth market for the company.

Expanding Multidisciplinary Capabilities

Aqua Metro brings to Saunders a broad Victorian reach, servicing both urban and rural water infrastructure projects. With established relationships across major water authorities and government agencies, Aqua Metro complements Saunders’ existing expertise in tank construction, pipework, and control systems. The acquisition is expected to enhance Saunders’ multidisciplinary project delivery by integrating hydraulics, mechanical, civil, and water infrastructure capabilities under one roof.

Financial Structure and Share Issuance

The total acquisition price is up to $30 million, structured with an initial payment of $18 million at completion, comprising $11 million in cash and $7 million in Saunders shares. The share component was issued at $0.74 per share, reflecting the 30-day volume weighted average price as of the completion date. Part of these shares falls within Saunders’ 15% placement capacity and will be issued promptly, while the remainder, along with potential earn-out shares, requires shareholder approval at the upcoming 2025 Annual General Meeting scheduled for mid to late November.

Performance-Linked Earn-Out

Up to $12 million in additional consideration is contingent on Aqua Metro’s financial performance through an earn-out period ending 30 June 2026. This structure aligns incentives and mitigates risk, ensuring that the acquisition delivers value in line with expectations. Investors will be watching closely how Aqua Metro integrates and performs within Saunders’ broader operations.

Looking Ahead

With this acquisition, Saunders positions itself as a more comprehensive provider in the water infrastructure space, potentially unlocking new contracts and markets. The pending shareholder approvals and the earn-out period will be key milestones to monitor as the company seeks to capitalise on this strategic expansion.