Symal Group Ltd (ASX: SYL) shares are charging higher on Wednesday after the construction group announced its largest acquisition so far.
At the time of writing, the Symal share price is up 10.37% to $2.98.
The ASX industrial stock remains down 14% since the start of 2026. However, it has still climbed 74% over the past 12 months.
Today's gain followed Symal's agreement to acquire Queensland-based Shamrock Civil, which will give the company more exposure to work across Australia.
Let's take a closer look at the deal.
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Symal buys Shamrock Civil
According to the release, Symal will acquire 100% of Shamrock Civil under a conditional agreement with a $51 million upfront payment.
This includes $40.8 million in cash and $10.2 million worth of newly issued Symal shares.
The sellers may also receive performance-based earn-outs covering FY26 and FY27. These payments are capped at $28.4 million, taking the possible total price to $79.4 million.
Shamrock is a founder-led civil contractor with more than 30 years of operating history and a workforce of over 200 people.
The business generated average annual revenue of more than $220 million over the past 3 years. Take note that more than $100 million of that came from defence work each year.
As a result, Symal expects Shamrock to deliver around $16 million of underlying EBITDA in FY26.
Management also believes the acquisition will increase Symal's earnings per share (EPS) during its first full year of ownership.
Defence pipeline drives interest
The acquisition gives Symal a larger defence presence, with over 70% of Shamrock's work-in-hand and tendered pipeline linked to the sector.
Shamrock is already an approved Department of Defence contractor and has completed projects across Queensland, the Northern Territory and South Australia.
Furthermore, the business has long-standing relationships in gas and resources, including work connected to QGC, Santos Ltd (ASX: STO) and Origin Energy Ltd (ASX: ORG).
Symal expects the acquisition to leave the company in a better position to compete for upcoming defence infrastructure work.
The announcement also pointed to around $900 million of civil packages linked to AUKUS, a $700 million upgrade at RAAF Base Townsville and a $1 billion facility at Hervey Range.
What comes next?
The deal still needs to meet several conditions, including approval from the Australian Competition and Consumer Commission (ACCC).
Symal plans to fund the cash portion through its existing banking facilities, while Shamrock's founders will stay on and keep running the business.
Should everything go to plan, Symal will gain stronger revenue and more defence work on its books.
