• The Environmental Group Limited (ASX: EGL) has agreed to acquire Advanced Boilers & Combustion Pty Ltd for $5.5 million
• Advanced is a leading Australian industrial boiler service and manufacturing business
• This acquisition represents a major expansion in EGL's sales and service offering to the industrial boiler industry

The Environmental Group Limited (ASX: EGL) has announced that it has signed a binding agreement to acquire 100% of the shares in Advanced Boilers & Combustion Pty Ltd (Advanced) for $5.5 million. Advanced is a leading Australian industrial boiler service and manufacturing business that was established in 2006. The purchase price will be paid from EGL's existing cash resources and is expressed on a debt-free basis, subject to customary working capital adjustments. The transaction is expected to be completed on or about 5 April 2025.Advanced's key operations include manufacturing and servicing a wide range of industrial boilers and water heaters, with a focus on the larger end of the industrial market. The company owns the exclusive rights in Australia to manufacture and sell Maxitherm boilers, a technology it acquired in 2014. In addition to the manufacture and sales of boilers and water heaters, Advanced has developed a significant and growing service business, which represented approximately 60% of its revenue in FY24.This acquisition represents a major expansion in EGL's sales and service offering to the industrial boiler industry, complementing its existing EGL Energy business. Advanced's expertise in fabrication, boiler fit out, economisers, pipe welding, skid manufacture, and control panels will broaden EGL's current capability. The transaction is expected to be earnings accretive for EGL, with Advanced reporting FY24 revenue of $16.0 million and normalised EBITDA of $1.6 million.