Big River Industries Expands WA Footprint with $17M Acquisition and $10M Share Offer
Big River Industries is set to acquire John’s Building Supplies for up to $17 million, backed by a fully underwritten $10 million entitlement offer to fund the deal. This move strengthens Big River’s presence in Western Australia’s growing building materials market.
- Acquisition of John’s Building Supplies valued up to $17 million
- Fully underwritten $10 million renounceable entitlement offer launched
- Deal expected to be earnings accretive from day one
- Entitlement offer priced at $1.37 per share, a 2.1% discount
- Completion targeted for mid-December 2025
Strategic Expansion into Western Australia
Big River Industries Limited (ASX – BRI) has announced a significant acquisition that will deepen its footprint in Western Australia’s building materials sector. The company is acquiring John’s Building Supplies, a well-established trade-focused distributor known for its strong customer relationships and broad product range including structural timber and engineered wood. The total consideration for the acquisition is up to $17 million, reflecting Big River’s commitment to growth in key regional markets.
John’s Building Supplies has built a reputation over decades for reliability and service, catering primarily to builders, subcontractors, and commercial clients. This acquisition aligns neatly with Big River’s strategy to focus on trade customers and capitalize on the growth opportunities in Western Australia, a region noted for its ongoing construction activity and infrastructure development.
Funding the Deal – Entitlement Offer and Capital Structure
To partially fund the acquisition, Big River is launching a fully underwritten renounceable entitlement offer aiming to raise approximately $10 million. Eligible shareholders in Australia and New Zealand can subscribe for three new shares for every 35 shares held at an offer price of $1.37 per share, representing a modest 2.1% discount to recent trading prices. The entitlement offer is supported by major shareholders and company directors, who have committed to take up at least 70% of the offer.
The balance of the acquisition funding will come from existing debt facilities, cash reserves, and the issuance of new shares to the vendor. Notably, part of the vendor consideration shares will be escrowed for up to 24 months, reflecting a measured approach to integration and alignment of interests.
Market Impact and Outlook
Big River’s CEO John Lorente highlighted the cultural fit and strong market position of John’s Building Supplies, emphasizing the expected earnings accretion from day one, even before synergies are realized. The acquisition is poised to enhance Big River’s competitive positioning in a key growth corridor, potentially driving shareholder value through expanded market share and operational efficiencies.
The entitlement offer’s renounceable nature allows shareholders flexibility to trade their entitlements, providing liquidity and choice amid the capital raising. Trading of entitlements is set to commence on 3 December 2025, with the offer closing on 17 December 2025.
Completion of the acquisition is anticipated around 15 December 2025, subject to customary conditions. Investors will be watching closely how the integration unfolds and whether the anticipated financial benefits materialize as planned.
Bottom Line?
Big River’s acquisition and capital raise mark a decisive step into Western Australia’s building materials market, setting the stage for growth but also testing execution in a competitive sector.
Questions in the middle?
- Will the acquisition deliver the projected earnings accretion amid market uncertainties?
- How will the integration of John’s Building Supplies affect Big River’s operational costs and margins?
- What is the market’s appetite for the entitlement offer, and how will any shortfall be managed?
