SRG Global to acquire WBHO Infrastructure

Subiaco-based SRG Global has announced plans to take over West Perth-based rival WBHO Infrastructure as part of a $15.2 million deal following the company's collapse late last month, securing more than 275 local jobs.

In a statement released to the ASX this morning, SRG confirmed it had signed a sale implementation deed to acquire the company, which was being funded through existing cash and equipment finance facilities.

The sale, which SRG hopes will be completed within the next fortnight, is expected to ensure the continuation of WBHO’s WA-based projects and safeguard the employment of its management team and 275 engineering and operational personnel.

The move comes just three weeks after administrators were appointed to 18 of WBHO Australia's entities, including WBHO Infrastructure and Probuild, with up to $250 million owing to stakeholders.

The acquisition is expected to assist SRG Global in expanding its asset management, civil maintenance and construction capabilities, a major part of its growth strategy.

SRG Global managing director David Macgeorge said the acquisition would ensure minimal disruption to WBHO Infrastructure’s WA business and its clients, while helping to solve major labour constraints.

“Access to quality people is a recurring challenge for our sector,” he said.

“Acquiring WBHO Infrastructure will give SRG Global a competitive advantage by enhancing our capacity to deliver broader services to clients.

“We believe it will be EPS accretive from day one, making it fundamentally low risk in its profile, delivering value for SRG Global shareholders."

Deloitte turnaround and restructuring WA leader Matt Donnelly said it was pleased to achieve the sale in a timely manner and grateful for the support of employees, clients, sub-contractors and suppliers.

Webuild, formerly known as Salini Australia, had reportedly been looking to take over WBHO's WA-based operations.