MAAS Group: MGH to buy SEQ asphalt business

About the author:

Author name:

By Liam Schofield

Job title:

Analyst

Date posted:

01 May 2023, 7:30 AM

Sectors Covered:

Industrials

• MAAS Group (ASX:MGH) has agreed to buy a 75% interest in South East Queensland asphalt business, Austek Asphalt, for $39.0m. The residual 25% is to be retained by a business founder, who will continue in his role post-acquisition.
• Whilst a multiple wasn’t disclosed, we estimate it to be c.4.0-4.5x EBITDA, reflecting c.3-4% EPS accretion on a proforma basis.
• We retain our ADD recommendation, slightly increasing our valuation to (login to view).

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