Symal to enter SA market with majority acquisition of Davison Earthmovers

Just nine days after making moves in Queensland with the acquisition of civil contracting and haulage businesses Timms Group and L&D Contracting, diversified services provider Symal Group (ASX: SYL) is making a splash in South Australia with the planned purchase of an 80 per cent stake in Davison Earthmovers.

This means that in December alone Symal has announced more than $51 million worth of acquisitions, now that it has executed a conditional agreement for the investment in Davison Earthmovers at an upfront acquisition price of $23.2 million funded by cash reserves.

Earlier this week Symal also announced it had established $300 million worth of new revolving corporate debt and bank guarantee facilities, providing liquidity to accelerate the group's growth ambitions as well as added flexibility to execute an 'inorganic growth strategy'.

Symal highlights Davison's high regard as a local operator in South Australia, founded by Paul Davison in 1986 and specialising in earthmoving and civil works across the commercial, industrial, government and private sectors.

Paul Davison will retain 20 per cent of the company he founded and continue to lead the business, but he will have a put option - and Symal a call option - for the remaining 20 per cent ownership to be sold at 3-4x EBITDA in the period of 4-5 years after completion of the deal, which is expected next quarter.

Symal says the deal structure incentivises management retention and aligns with its strategy to expand its national footprint through targeted, value-accretive acquisitions.

"This acquisition marks a pivotal step in Symal’s journey to build enduring capability and presence in South Australia," says Symal Group managing director Joe Bartolo.

"Davison Earthmovers brings a legacy of excellence, a skilled team, and trusted relationships that resonate with our own values and culture.

"By integrating their expertise and resources, we’re not just expanding our footprint – we’re strengthening our ability to deliver complex infrastructure solutions with agility and reliability."

Symal says the acquisition gives it immediate scale and credibility for Symal in South Australia, a region with a $27.3 billion infrastructure pipeline over the next four years

"South Australia is entering a transformative phase, with major investments reshaping its infrastructure landscape," adds Bartolo.

"The addition of the Davison team positions Symal to play a leading role in this growth by leveraging local insights and executing on our proven self-performing model.

"We look forward to welcoming Paul and the Davison team to the Group and working together to create lasting value for our clients, communities and stakeholders."

The acquisition is expected to be earnings per share (EPS) accretive from the first year of ownership, with forecast annualised underlying EBITDA of around $7 million in FY26.

Symal shares are up 2.45 per cent today at $3.34, and have risen by almost 23 per cent since the start of this month.