The Environmental Group (EGL) M&A Presentation summary

Acquisition overview

• Announced acquisition of Advanced Boilers & Combustion Pty Ltd for $5.5 million, funded from existing cash resources.

• Acquisition expected to complete on 5 April 2025.

• Advanced is the second largest industrial boiler supplier in Australia with about 8% market share.

• Founders Laurie Grigg and David Seymour will remain in key roles post-acquisition.

Strategic rationale and market position

• Acquisition expands presence in the industrial boiler market and complements existing business.

• Advanced holds exclusive IP rights to Maxitherm boiler technology, a leading water tube boiler in Australia.

• Enhances manufacturing capabilities, reducing outsourcing and enabling cross-selling across divisions.

• Advanced's Maxitherm range covers 2MW–50MW, targeting larger industrial clients.

• Strengthens national footprint, especially in Victoria and Queensland, with 24/7 sales and service.

Financial and operational highlights

• Advanced reported FY24 revenue of $16.0 million and normalised EBITDA of $1.6 million.

• Approximately 60% of revenue is recurring service revenue, totaling about $9.8 million in FY24.

• Revenue grew at a CAGR of 4.6% from FY19 to FY24.

• Key client industries include food and beverage, paper manufacturing, hospitals, and meat processing.

• Operations span Victoria (HQ), New South Wales, and Queensland.