• Saunders to acquire 100% of Aqua Metro for up to $30M
• Aqua Metro provides water infrastructure services, with $411M order book and $1.4B pipeline
• Acquisition strengthens Saunders' presence in water sector, adds complementary capabilities

Saunders International Limited (ASX: SND) has entered into a Share Sale Agreement to acquire 100% of the issued shares in Aqua Metro Pty Ltd and its associated entities for up to $30.0 million. Aqua Metro is a Victoria-based business specialising in delivering integrated services to the water sector, with a client-focused approach and long-term program and project agreements in place with utilities and government agencies. The acquisition enhances Saunders' national footprint and diversified infrastructure capabilities, strengthening its presence in the key water sector. Aqua Metro has a strong outlook, with a $411 million order book (work in hand) and a pipeline exceeding $1.4 billion. The transaction is expected to be earnings per share (EPS) accretive in FY2026 based on Aqua Metro's FY26 budget, with forecast revenue of $135.0 million and EBITDA of $11.0 million. The acquisition will be funded through a $5.0 million institutional placement, a new $10.0 million acquisition debt facility, and Saunders' existing cash reserves. Saunders is committed to preserving Aqua Metro's strong culture, customer relationships, and operational excellence, with the management team and personnel remaining in their current roles.

Aqua Metro's forecast revenue for FY2025 is $102.0 million, with expected EBITDA of $8.2 million. Based on its FY2026 budget, revenue is projected to increase to approximately $135.0 million, with EBITDA of $11.0 million.

The acquisition supports Saunders' long-term strategy to increase its presence in the water sector, one of its key growth markets. By combining Aqua Metro's capabilities with Saunders' expertise, the transaction is expected to enhance Saunders' multidisciplinary project delivery capability and deliver long-term value creation.