Symal Expands Into South Australia with $23.2M Davison Earthmovers Deal

Strategic Acquisition Bolsters South Australian Presence

Symal Group Limited (ASX, SYL) has taken a significant step in expanding its footprint by entering into a conditional agreement to acquire 80% of Davison Earthmovers, a well-established civil construction business based in South Australia. The $23.2 million deal, funded entirely from Symal’s cash reserves, positions the company to tap into a region poised for substantial infrastructure growth.

Founded in 1986, Davison Earthmovers brings nearly four decades of local expertise, a skilled workforce, and a strong reputation for quality and reliability. The business operates across commercial, industrial, government, and private sectors, supported by a robust pipeline of secured contracts and recurring clients. Importantly, founder Paul Davison will retain a 20% stake and continue to lead the business, ensuring operational continuity and preserving valuable local relationships.

Capitalising on South Australia’s Infrastructure Boom

South Australia is currently experiencing a transformative phase, with a $27.3 billion infrastructure pipeline projected over the next four years. Symal’s acquisition of Davison provides immediate scale and credibility in this market, enabling the group to pursue significant projects in road and rail infrastructure, defence, building and facilities, and renewable energy sectors.

Symal’s Managing Director Joe Bartolo highlighted the strategic importance of the acquisition, noting that integrating Davison’s expertise and assets will enhance Symal’s ability to deliver complex infrastructure solutions with agility and reliability. The deal aligns with Symal’s broader geographic expansion strategy, leveraging Davison’s established brand and asset-backed platform to accelerate growth in South Australia.

Financial Outlook and Future Prospects

The acquisition is expected to be earnings per share (EPS) accretive from the first year, with forecast annualised underlying EBITDA of approximately $7 million in FY26. The deal includes over $11 million in plant and equipment assets, further strengthening Symal’s operational capacity. Completion is anticipated in the third quarter of FY26, subject to customary closing conditions.

Symal also retains a call option to acquire the remaining 20% stake from Paul Davison within four to five years at a multiple of 3-4 times EBITDA, while the vendor holds a put option, aligning incentives for management retention and long-term value creation.

Looking ahead, Symal plans to provide updated FY26 guidance following completion, which will shed further light on the acquisition’s impact on the group’s financial performance and strategic positioning.