BIG RIVER INDUSTRIES LIMITED — M&A Activity 2018

Nov 14, 2018

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ASX Announcement

15th November 2018

Acquisition of MB Prefab – Geelong, Victoria

Big River Industries Ltd (ASX: BRI) advises that it is has agreed to acquire the assets and trading business of M.B. Prefab Framing Pty Ltd (MB Prefab), located at Geelong, Victoria. The purchase is subject to certain pre-conditions which are expected to be met.

This continues the expansion of Big River’s network into the major population centres of Australia, to directly supply the Trade segment of the building and construction industry. MB Prefab not only gives Big River a market position in the growing Geelong region, it also provides a strategic positioning in the prefabrication market, a growing trend in construction design.

Whilst the existing MB Prefab business is focused on the residential markets for the supply of prefabricated timber wall frames and roof trusses, the business provides a useful platform to leverage Big River’s position in the commercial and multi-residential segments to further diversify the acquired business over time. Hence this local Geelong presence will offer enhanced service and product range for existing Big River clients, while bringing a whole new range of customers and products into the Big River group.

MB Prefab has a long trading history in the broader Geelong market, having been established over 40 years ago. Jim Bindon, Big River CEO said: “This highly regarded local business will become an important part of the Big River network, and the site is very well equipped to supply the broader range of products marketed by Big River into all construction segments of the Geelong and broader Melbourne markets, a key component of the Big River strategy”. Doug Maxwell, one of the founders of the business, will remain with MB Prefab in an operational role, and all staff will be retained as part of the transition into the Big River group.

Sales revenue of MB Prefab is in excess of $10m per annum, and solid growth over time can be expected from the widened focus the Big River group can bring to the business. The investment is earnings per share accretive and will include a mixture of cash and an earn-out component to help align the interests of the vendors and Big River.

For more information, please contact:

Jim Bindon (CEO)Steve Parks (CFO)	jbindon@bigrivergroup.com.au+612 6644 0903sparks@bigrivergroup.com.au+612 6644 0922