Symal’s $23.2M Acquisition Risks and Rewards in South Australia’s Infrastructure Boom
Symal Group Limited is acquiring an 80% stake in Davison Earthmovers for $23.2 million, marking a strategic expansion into South Australia's civil infrastructure market. The acquisition is expected to be earnings accretive from the first year and includes significant plant and equipment assets.
- Symal acquires 80% of Davison Earthmovers for $23.2 million
- Transaction funded entirely from existing cash reserves
- Adds ~$7 million annualised EBITDA and $11 million in assets
- Founder retains 20% stake with options for full ownership
- Immediate access to South Australia's growing infrastructure and defence markets
Strategic Expansion into South Australia
Symal Group Limited has announced the acquisition of an 80% stake in Davison Earthmovers, a well-established South Australian civil construction business, for $23.2 million. This move represents a significant step for Symal as it seeks to deepen its presence in the region’s expanding infrastructure and civil markets. The deal is set to close in the third quarter of fiscal year 2026, subject to customary completion conditions.
Davison Earthmovers, founded in 1986 and headquartered in Royal Park, South Australia, brings a robust portfolio of earthmoving and civil works capabilities. The company serves a diverse client base including government bodies, councils, and Tier 1 and Tier 2 construction firms, with specialisations spanning road, rail, power, renewables, and defence sectors.
Financial and Operational Benefits
The acquisition is expected to contribute approximately $7 million in annualised, normalised EBITDA to Symal, with earnings per share accretion anticipated from the first year of ownership. Alongside the equity stake, Symal will acquire over $11 million worth of plant and equipment assets, enhancing its operational capacity in South Australia.
Notably, the founder of Davison Earthmovers will retain a 20% ownership stake, ensuring continuity and alignment of interests. Symal also holds a call option to acquire the remaining 20% within four to five years at a multiple of 3-4 times EBITDA, while the vendor retains a put option under the same terms.
Positioning for Growth Amid Infrastructure Boom
South Australia is currently experiencing a surge in infrastructure investment, with the state government committing $27.3 billion in public sector infrastructure spending through to 2028/29. Additionally, the region is a focal point for defence expenditure, with over $3.2 billion planned over the next decade, excluding the extensive AUKUS defence partnership investments.
Symal’s acquisition of Davison Earthmovers positions the group to capitalise on these opportunities, particularly in renewables and defence projects aligned with South Australia’s ambitious targets for 100% renewable electricity by 2027 and net zero emissions by 2050. The integrated delivery model that Symal plans to replicate in South Australia aims to create a scalable ecosystem combining contracting and plant hire services.
Cultural and Strategic Alignment
The acquisition is not only a financial transaction but also a cultural fit. Davison Earthmovers is founder-led with a nearly 40-year history, and its local reputation and longstanding relationships with key government and private clients complement Symal’s strategic ambitions. This alignment is expected to facilitate a smooth integration and sustained growth trajectory.
Bottom Line?
Symal’s acquisition of Davison Earthmovers sets the stage for accelerated growth in South Australia’s booming infrastructure sector, but integration execution and market conditions will be key to unlocking full value.
Questions in the middle?
- How will Symal integrate Davison’s operations to maximise synergies?
- What impact will South Australia’s infrastructure pipeline have on Symal’s future earnings?
- Will Symal exercise its option to acquire the remaining 20% stake, and under what market conditions?
