Vysarn acquires Waste Water Services Pty Ltd for $7.5M; WWS to become subsidiary as expansion continues

Wastewater industrial services player Vysarn (ASX:VYS) has announced its acquisition of competitor Waste Water Services Pty Ltd for $7.5M.

100% of issued shares in the company will be bought off its sole holder, one Jerry Hogan, with the purchase price containing an assumption Hogan has no debt. An agreed level of working capital has been met upon.

The cash consideration will be funded through a combination of cash and debt funding on Vysarn’s part.

“Vysarn’s proforma FY2024 Net Profit After Tax (NPAT) in addition to WWS’ FY2024 unaudited NPAT would deliver earnings per share accretion of greater than 20%,” the company wrote on Friday.

Vysarn sees immediate ways to boost WWS’s overall desirability – “management intends to rapidly integrate WWS into the Vysarn Group of companies and then pursue growth,” the company wrote. The acquisition has a start date of September 1.

In between the lines, Vysarn is intending to begin delivering wastewater treatment plants for the resources sector.

The stock which might lack traditional hallmarks of excitement has been having a fairly good run over the last twelve months – 1Y returns are up +100% sharp.

VYS last traded at 39cps.