GenusPlus Raises $200M Placement to Acquire MPC Kinetic in Strategic Expansion

Transformative Acquisition Expands GenusPlus into Gas and Water

GenusPlus Group Ltd (ASX:GNP) is poised for a major strategic leap with its binding agreement to acquire MPC Kinetic Holdings Pty Ltd (MPK) for up to A$400 million. The upfront cash consideration stands at A$325 million, supplemented by deferred and earn-out payments contingent on MPK hitting an FY27 EBIT target of A$70 million. This acquisition marks a significant diversification for GenusPlus, adding gas gathering, well servicing, and water pipeline construction capabilities to its existing electrical infrastructure services.

The deal is underpinned by a $200 million institutional placement priced at $9.25 per share, representing a 5% discount to the last closing price and a 1.5% discount to the five-day VWAP. The placement, which will see the issue of approximately 21.6 million new shares, is expected to complete by late May, with the MPK acquisition targeted for completion on 1 July 2026. Bell Potter Securities and Euroz Hartleys are joint lead managers, with MA Moelis Australia as co-manager.

Financial Upside and Earnings Accretion

MPK has demonstrated strong recent financial performance, with FY25 EBITDA of A$104 million and EBIT of A$83 million, growing to forecast FY26 EBITDA of A$116 million and EBIT of A$95 million. Although FY27 earnings are expected to moderate due to practical completion of major renewable projects, the earn-out structure mitigates downside risk by tying up to A$50 million of consideration to EBIT targets.

On a pro-forma FY26 basis, the acquisition is expected to nearly double GenusPlus’ EBITDA and EBIT(A), with a modest 12% increase in shares outstanding translating into an estimated 59% EPS accretion. The acquisition multiple is attractive at approximately 4.3x FY27 EBITDA and 5.7x FY27 EBIT, assuming earn-out targets are met.

GenusPlus’ balance sheet remains conservative post-transaction, with pro-forma net debt to normalised EBITDA ratios ranging from 0.01x (upfront consideration only) to 0.39x (assuming full earn-out paid upfront). This financial flexibility is supported by an upsized A$549 million revolving syndicated facility arranged with Commonwealth Bank, HSBC, and National Australia Bank.

Strategic Rationale: Complementary Skills and Market Positioning

The acquisition broadens GenusPlus’ service offering by combining MPK’s civil and pipeline expertise with Genus’ electrical infrastructure capabilities. This synergy enables Genus to self-perform both civil balance of plant (CBOP) and electrical balance of plant (EBOP) scopes on renewable projects, enhancing competitiveness and operational control.

MPK’s exposure to the gas sector, particularly onshore coal seam gas projects in Queensland’s Surat Basin, positions GenusPlus to capitalise on Australia’s energy transition and supply security challenges. With long-term contracts and Tier 1 clients including Santos, Origin, Arrow, QGC, and Vestas, MPK brings a solid foundation of recurring revenue and market credibility.

This strategic move aligns with GenusPlus’ recent growth trajectory, which includes a $36.5 million acquisition of Railtrain Holdings earlier this year and a $110 million contract for a battery energy storage system in South Australia, highlighting the company’s expanding footprint across critical infrastructure sectors. The company recently upgraded its FY26 EBITDA guidance by approximately 35%, reflecting strong operational momentum.

Risks and Conditions to Completion

The transaction remains subject to several conditions, including successful completion of the capital raising, ACCC approval, and consent from material contract counterparties. The placement is not underwritten, introducing some uncertainty around the final amount raised. Integration risks are also notable, as GenusPlus must successfully merge MPK’s operations and retain key personnel to realise anticipated synergies and earn-out payments.

Additional risks include potential change of control clauses in MPK’s contracts, exposure to historical liabilities, and market acceptance challenges in new sectors. GenusPlus has mitigated some risks through warranty and indemnity insurance but remains exposed to unsecured obligations from MPK’s diverse shareholder base.

Investors should also consider broader operational risks such as workforce availability, project delivery challenges, and regulatory compliance, all of which could materially impact financial performance post-acquisition.