Lindsay Australia beefs up national transport network with $108m deal for Tasmania’s SRT Logistics

Brisbane-based transport group Lindsay Australia (ASX: LAU) is acquiring SRT Logistics, Tasmania’s largest provider of refrigerated transport solutions, for $108.2 million, giving the group scope to scale its logistics network across Bass Strait for the first time.

Lindsay, a company founded in 1953 by Tom and Peter Lindsay who were pioneers of refrigerated transport in Australia, is funding the acquisition through a cash-and-scrip deal that also includes Lindsay assuming SRT Logistics’ existing debt.

SRT shareholders will receive $30.2 million in scrip and $57.2 million in cash after Lindsay Australia assumes the company’s debt, representing an enterprise value of $108.2 million.

Following the acquisition, SRT’s shareholders will control about 12.8 per cent of Lindsay Australia shares.

Lindsay says SRT’s customer base primarily comprises major food manufacturers, producers and retailers, most of which hold long-term relationships with the company.

The company is expected to achieve revenue of $137.6 million in FY25 to deliver earnings before interest and tax of about $14.6 million.

“SRT is a quality business that has created a compelling position in a market with positive growth characteristics,” says Lindsay Australia’s CEO Clay McDonald.

“The acquisition demonstrates disciplined execution of our ‘Grow the Network’ strategy. It will be a transformative event for Lindsay Australia and our shareholders through the creation of a truly national service offering for our customers.

“SRT is the clear market leader in the Tasmanian refrigerated transport market. Together, both businesses demonstrate strong operational and cultural alignment with the combination creating compelling opportunities for growth, synergy realisation and competitive advantage.”

Headquartered in Hobart, SRT Logistics has been a family owned and operated company since it was founded in 1996.

Lindsay will operate SRT Logistics as a wholly owned subsidiary, with all key management expected to remain in place following the acquisition.

SRT Logistics’ CEO and major shareholder Robert Miller will join the Lindsay Australia board as an executive director.

“Integrating within Lindsay’s network represents a logical and highly compelling next step in SRT’s commercial evolution,” says Miller.

“This transaction underscores our commitment to delivering superior customer service while enhancing operational efficiencies and expanding our geographic footprint. I look forward to leveraging the combined expertise to deliver further value to our customers and employees.”

Miller says his decision to join the Lindsay Australia board reflects the strength of the merged entity.

“Lindsay’s clear track record of strategy execution and leading market position have forged a strong operating platform with a highly attractive outlook,” he says.

“I have been deeply impressed by the Lindsay team and am excited about the opportunity to work with them in driving continued growth and success.”

Lindsay has affirmed that it is on track to deliver underlying EBITDA of between $80 million and $82.5 million in FY25.

The acquisition of SRT is expected to increase earnings per share by about 15 per cent on a pro forma basis before cost and revenue synergies are taken into account.

Lindsay Australia says SRT’s logistics network is “highly complementary to Lindsay’s existing branch and terminal locations with the merged entity becoming a truly integrated national refrigerated transport player”.

The company says the acquisition will also create end-to-end opportunities for customers who are seeking full road, rail and sea refrigerated logistics solutions nationally, while also providing Lindsay with additional geographic and customer diversification.

The acquisition is expected to be finalised by 30 June 2025.