Company Interview / Funding the flow: Saunders’ $30M Aqua Metro deal

Key points:

Saunders International (ASX:SND) acquires Aqua Metro for $30 millionAcquisition enhances capacity and reach in the water infrastructure sectorDeal structure includes cash, shares, and an earn-out componentOngoing acquisition and growth strategy with strong balance sheet

Saunders International (ASX:SND) has announced the acquisition of Aqua Metro and its subsidiaries through a $30 million share sale agreement. Mark Benson states that the acquisition supports Saunders International’s broader ambition to strengthen its footprint in the water sector. Saunders International currently operates across multiple sectors, including defence, water, energy, and resources, and sees a national opportunity for expansion, particularly in New South Wales and Queensland.

Benson highlights Aqua Metro's strong reputation and customer focus within Victoria’s water sector. The acquisition is intended to accelerate growth and enhance the company's presence in asset renewal programmes, reflecting increasing demand from Australia’s growing population. Benson points to the cultural alignment between the two entities, having worked together on several projects and recognising substantial synergies.

In terms of funding, Benson outlines a structure involving $18 million up front—split between $11 million in cash and $7 million in Saunders International shares—with an additional earn-out of up to $12 million based on future results. The acquisition is partially funded through a $5 million institutional placement and an $8 million drawdown from a debt facility arranged with CBA. According to Benson, Saunders International maintains a strong balance sheet and has completed several acquisitions as part of its growth strategy, with both organic and acquisition-led expansion remaining key priorities.