• Acquisition of John's Building Supplies, a well-respected WA building products distributor
• Established and profitable business with 3-year average revenue of $41.2m and EBITDA of $5.2m
• Acquisition to be funded by a $10m equity raise and existing bank facilities

Big River Industries Limited (BRI) has announced the acquisition of the business and assets of John's Building Supplies (JBS), a well-respected distributor of building products in Welshpool, WA. JBS has been operating for 43 years and is an established and profitable business, with a 3-year average revenue of $41.2m and EBITDA of $5.2m. The acquisition will provide immediate scale for BRI in the WA market, significantly enhancing the Group's capability in interiors and cladding, and providing a platform for cross-selling BRI's manufactured products. The total consideration for the acquisition is up to $17.0m, comprising $13.0m cash upfront, $2.0m in scrip (subject to escrow), and up to $2.0m in earnout payments over 18 months based on EBITDA performance. The acquisition is expected to be 41% EPS accretive on a proforma basis. BRI will fund the acquisition through a fully underwritten $10m renounceable entitlement offer, $2m in scrip, and existing bank facilities. Key management personnel, including owner John Lindsay, will be retained in the business.

On a proforma basis, the acquisition will increase BRI's FY25 revenue by 10% to $446.3m and EBITDA by 15% to $33.9m. The acquisition is expected to be immediately 41% EPS accretive before significant items and pre-synergies.

BRI expects residential markets to remain soft into early FY26, with improvement more likely later in FY26 due to delays but supported by strong underlying demand. Commercial activity is expected to remain steady, supported by firm pipelines. BRI will focus on growing market share in differentiated segments, improving margins through pricing and mix, lifting operational performance, and pursuing targeted, value-accretive acquisitions.