Lindsay Australia (LAU) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of SRT Logistics provides entry into the fast-growing Tasmanian agri-market, diversifying revenue and reducing exposure to weather risks in Queensland.

• SRT is Tasmania's largest refrigerated supply chain provider, with strong service model, blue-chip customer base, and links to the agri-food sector.

• The deal supports network expansion, year-round exposure to complementary agricultural seasons, and aligns with growth strategies.

• Entry into the Trans Bass Strait shipping market and expanded access to southern produce markets increase revenue opportunities and reduce cyclicality.

• SRT’s established relationships and infrastructure in Tasmania offer a unique, hard-to-replicate market position.

Financial terms and conditions

• Acquisition price is AUD 108.2 million, representing a 7.4x pre-synergy EBIT multiple on normalized 2025 forecasts.

• Funded by AUD 30.2 million in scrip (46.5 million shares, 12.8% post-deal stake) and AUD 57.2 million in cash, with Lindsay assuming AUD 23 million in SRT debt.

• SRT vendors will hold approximately 12.8% of Lindsay shares post-completion; scrip consideration subject to escrow, released in two tranches after FY26 and FY27 results.

• AUD 60 million drawn from existing debt facilities; pro forma net leverage at 1.9x, within target range.

• No earnouts; SRT vendors become significant shareholders, aligning interests.

Synergies and expected cost savings

• Expected AUD 1 million in cost synergies in the first 12 months, adding 2.5% EPS accretion.

• Revenue synergies from cross-selling, network extension, and leveraging complementary customer bases.

• Cost savings through optimized equipment utilization, procurement, and labor efficiencies.

• Optimisation of mainland operations and increased equipment utilisation through backfill opportunities.

• Cross-pollination of industry relationships and management expertise, including Trans Bass Strait shipping and last mile delivery.