LYCOPODIUM LIMITED — M&A Activity 2024

Oct 17, 2024

Lycopodium Limited ABN 83 098 556 159

W lycopodium.com

Lycopodium Limited Signs Agreement to Acquire Majority Interest in SAXUM

PERTH, 18 October 2024

Lycopodium Limited (“Lycopodium” or the “Company”) is pleased to advise that, following a due diligence process, it has entered into a Heads of Agreement to acquire a majority interest in SAXUM, an Argentinian headquartered engineering company. Under the terms of the agreement, Lycopodium will acquire a 60% shareholding in SAXUM with options over the remaining share capital in subsequent years.

SAXUM is a multi-disciplinary engineering and project management services company, founded in 1996, which provides services to the Mineral Processing, Cement & Lime, Manufacturing & Infrastructure and Oil & Gas sectors. It consists of four companies which are established in Argentina, Brazil, USA and Australia and operates from five offices around the globe – Tucumán and Buenos Aires, Argentina; Irving, Texas; Belo Horizonte, Brazil; and Perth, Western Australia.

Holding no debt and with consistent revenue growth and strong profit margins, SAXUM will contribute immediately to Lycopodium’s revenue and profitability and the acquisition supports Lycopodium’s key strategic initiative to further geographically expand its global presence in the Americas.

Lycopodium’s Managing Director, Peter De Leo, said: “We are extremely pleased to announce this acquisition, which will further enhance our capabilities, expand our service offering and position us more competitively in the global market. SAXUM is a mature business, is culturally aligned with Lycopodium and is an appropriately sized business for us to establish a material footprint in Latin America to complement our Lima office as well as supporting our ingress into the US market.”

Post-acquisition, the SAXUM brand will be retained and the company will continue to be managed by the incumbent leadership team, which will not only secure trust with existing clients but also positions SAXUM for further expansion and success in its markets.

SAXUM founder and CEO, Dr Guillermo Etse, said: “We are thrilled with the opportunity to join the global Lycopodium family. I believe this is an excellent fit for our business, as we too are a technically led, client focused and value centric business.”

The acquisition will be funded from cash reserves, and it is anticipated the purchase will be finalised in Q1 2025, at which point further details will be provided.

Level 5, 1 Adelaide Terrace, East Perth WA 6004, Australia T +61 8 6210 5222

Lycopodium Limited ABN 83 098 556 159

W lycopodium.com

For further information

Peter De Leo Managing Director, Lycopodium Limited Telephone: +61 8 6210 5222

About Lycopodium Limited (ASX: LYL)

Lycopodium is a leader in its field, working with clients to provide integrated engineering, construction and asset management solutions. We have the expertise to deliver complex, multidisciplinary projects, through to the provision of feasibility studies and advisory services.

Operating across the Resources, Rail Infrastructure and Industrial Processes sectors, we offer a diverse team of industry experts to deliver bespoke and innovative solutions across all commodity types.

With the capability to deliver projects around the world, we have offices in Australia, South Africa, Canada, Peru, Ghana and the Philippines.

For more, visit www.lycopodium.com

Level 5, 1 Adelaide Terrace, East Perth WA 6004, Australia T +61 8 6210 5222