Pitcher Partners is pleased to present our Deal Pulse “Moving on up” analysing Queensland Mergers & Acquisitions (“M&A”) over the 2024 calendar year. This report presents research findings including key transactions and sector trends.
Deal Pulse focuses on Queensland M&A activity being:
Acquisitions by Queensland based private and public corporate entities of local, interstate and offshore ventures; and
Divestments of Queensland based ventures to local, interstate and offshore entities and private equity funds.
Transaction values are included in this report to the extent that deal values have been publicly disclosed.
Queensland’s M&A scene kept dealmakers on the edge of their seats in 2024, with market activity reflective of two contrasting halves. Overall, deal volumes rose by 9% to 272 deals (up from 250 in 2023). However, the second half of the year saw deal activity “Moving on up” with 151 deals, compared to just 118 in the same period the previous year (which had marked the lowest 6-monthly activity in Deal Pulse history outside the COVID-affected first half of 2020).
While the majority of sectors saw increased activity compared to the previous year, Industrials saw the most notable increase in attention from investors.
Number of deals and total deal values by year
Queensland market breakdown by size
Key observations and trends observed included:
• Industrials & chemicals: substantial increase in activity to 36 deals in 2024, well-above the 10-year average of 22 transactions per year. Investors looked towards businesses that keep the economy moving particularly, Industrial Machinery and Products, Packaging and Energy Storage.
• TMT: remained the most active sector in Queensland, led by 16 Application Software transactions and 9 IT Consulting deals. The Managed Services subsector saw 4 deals as it experiences a period of consolidation.
• Business services: rebounded strongly with 31 deals in 2024, a 63% increase from 19 deals in 2023. The most active subsectors were Business Consulting (5 deals), Advertising (4 deals) and Childcare (3 deals).
• National expansion: Queensland businesses made 68 acquisitions of companies operating in other Australian states, marking the 2nd highest level of such activity over the 11 years of Deal Pulse.
• Cross border deals: Queensland’s economy appears a safe haven from global disruptions, with International inbound deal volumes rising to 51 deals, a 24% increase from 41 deals in the prior year, and up 55% since the all time low of 33 deals in 2022.
Although direct investment from Private Equity firms in Queensland businesses fell to its lowest level since 2019, with only 1 deal, there was still significant bolt-on acquisition activity by PE-funded portfolio companies in the Queensland market.
Overall, dealmakers are optimistic, and this material rebound in deal activity (particularly over the last 6 months) provides strong momentum into 2025.
We trust you find this report valuable. Should you wish to understand the opportunities for M&A in your sector or to discuss strategic succession planning we look forward to hearing from you.
Sectors summary
Sectors trending up
Energy, mining and utilities
Energy, mining & utilities continued its upward trend in deal activity, with 41 deals surpassing the 10-year average deal volume of 35. Anglo American’s decision to exit Australian coal significantly spurred market activity, leading to the sale of their interests in the Jellinbah Group to Zashvin for $1.6 billion and the Dawson mine to Indonesian-based BUMA for $700 million.
Industrials and chemicals
The Industrials and chemicals sector experienced its most active year in the 11 years of Deal Pulse with 36 deals. Businesses that provide equipment or products to keep the economy moving were highly sought-after. The industrial machinery subsector was the most active, with 6 deals, including the acquisition of Darling Downs-based McCormack Industries by Brisbane-based Digga Australia.
The subsectors of Industrial Products, Packaging, and Power, Batteries and Charging were also active, with 4 deals each.
Business services
The Business services sector saw a noticeable increase in activity to 31 deals, compared to the 10-year average of 27 deals.
Childcare saw a return to significant transaction volumes with Embark Early Education announcing the acquisition of eleven centres across Victoria and Queensland.
Other sectors which saw notable interest were Business Consulting (5 deals), Advertising (4 deals) and Office Services and Supplies (3 deals).
Sectors strong and steady
The TMT sector retained its position as the most active M&A sector in Queensland in 2024, a title it has held for the last six editions of Deal Pulse. Application Software led the way with 16 transactions, and businesses in IT Consulting were highly sought after by acquirers with 9 deals.
The Managed Services subsector saw significant consolidation, with AUCyber acquiring Venn IT Solutions and Arado before itself receiving a takeover offer from 5G Networks.
Construction
The Construction sector maintained its solid foundation of M&A activity in recent years, led by deals in the Construction Services subsector. Specifically, environmental and ecological consultancy firms continue to seek the right resources and capabilities to meet client demands.
The Australian arm of global ESG and sustainability firm SLR Consulting acquired two Brisbanebased firms, Groundwork Plus and FRC Environmental.
Transport
M&A activity in the Transport sector saw 12 deals, well above its 10-year average of 9 deals.
Subsectors driving this deal volume were Freight and Logistics (4 deals), Bus Services (3 deals) and Transport Vehicle Sales and Leasing (3 deals).
Transactions in the sector were supported by niche operators including specialised logistics companies in the automotive and heavy cargo sectors as well as vehicle customisation for buses and refrigerated vehicles.
Sectors trending down
Consumer
The Consumer sector has been supported by subsector activity in Automotive Retail and Restaurants since 2017 when it was the most active sector in Queensland M&A.
A decline in transactions within these subsectors in 2024 has slowed the momentum. Despite this, Online Retail and Packaged Food and Meats experienced above-average interest from dealmakers.
Pharma, medical and biotech
M&A activity in the Pharma, Medical & Biotech sector saw only 14 deals, falling well below the 10-year average of 27 deals.
Healthcare Services emerged as the most active subsector with 4 deals. Notably, Private Emergency Health Australia received a $51 million investment from Advent Partners for a 55% stake in the business.
Following its off-market takeover by Pacific Equity Partners, Healthia acquired fellow Queensland allied health aggregator, InterHealthcare, from Next Capital.
Leisure continued its recent decline in deal activity against the backdrop of a challenging consumer environment.
Australian Venue Co acquired the leaseholds of 10 venues across SEQ from Hallmark Hospitality for $50 million.
The Boating sector saw notable activity with 2 deals: French-listed Fountaine Pajot’s investment in Gold Coast-based The Yacht Sales Co. and Northside Marine’s sale to a private investor.
Consumer Pharma, medical and biotech Leisure
Technology, media and telecommunications 1
Code to success
The TMT sector has led Queensland M&A, as the most active sector, over the 11-year history of Deal Pulse. Deal volumes rebounded in 2024 from 39 to 48 deals, again driving the Queensland M&A market.
Queensland continued to be a source of successful SaaS and application software businesses for investors.
Businesses with software aimed at improving efficiency in the construction, asset management and property industries attracted strong interest, including the following deals:
• Pitcher’s client Simpro, a global leader in field service management solutions, acquired BigChange, a UK-based provider of job management software. This strategic acquisition enhances Simpro Group’s capabilities and expands its offerings, enabling rapid global scaling.
• Canadian-based private group, JDM Technology, added to its growing list of portfolio companies with a focus on construction and asset management technology with its acquisition of Buildlogic
• Provider of maintenance management software to asset-intensive businesses, Maintenance Experts (‘MEX ’), sold to TMA Systems in a deal reported at $125m.
Other application software deals included:
• Technology One boosting its offering in the higher education space with its acquisition of CourseLoop.
• Sports wagering technology startup ZeroFlucs attracting the interest of casino and entertainment behemoth Caesars Entertainment.
• Ignition Logistics Software seeing investment from PieLAB Venture Partners in a deal reported at $11.4m.
Rising cloud adoption and cybersecurity concerns fueled M&A activity in the IT Consulting and Managed Services subsectors, as businesses competed for talent through consolidation.
• ASX-listed Attura acquired Exent for $8m to extend its advisory and consulting capabilities beyond the defence sector and expand nationally.
• Canary Technology Solutions increased its presence in Queensland by acquiring Wyntec
• Venn IT Solutions and Arado were snapped up by ASXlisted AUCyber for a combined $16m, before AUCyber itself received a takeover offer from 5G Networks.
2023
39
2024
48 Deals Deals
12 deals from 13 deals
The MEX team has developed an impressive product that has earned the trust of facilities managers across Australia and the Asia-Pacific region. This acquisition supports TMA’s goal of becoming the leading independent provider of EAM and CMMS solutions worldwide.
TMT deal volume and value breakdown by year
Mark Simner, CEO – TMA Systems
Industrials and chemicals
Machinery in motion
The industrials and chemical sector experienced its most active year in the 11 years of Deal Pulse. Acquirers were particularly attracted to businesses that provide essential equipment and products, as well as those capable of enhancing efficiency through smart design and processes.
Industrial Machinery was the most active subsector with 6 deals. Notable transactions included:
• Stenhouse Lifting Equipment’s sale to Swedish family group, Axel Johnson AB, adding to their portfolio of industrial companies.
• Digga Australia Group, a leading manufacturer of heavy equipment attachments, acquired McCormack Industries to expand its presence in the agricultural and industrial attachments space.
• Agridry, a Toowoomba-based manufacturer of drying and aeration equipment, was acquired by US-based Morrison Industries, owner of HE Silos.
• Pitcher’s client, Russell Mineral Equipment (RME), secured $40m in investment from the federal government’s National Reconstruction Fund Corporation (NRFC) and Resource Capital Funds.
• Universal Field Robots, a fast-growing provider of autonomous solutions for surface and underground mining markets, was acquired by global giant, Sandvik.
Power and Energy Management remained a prominent theme in Queensland M&A with 4 deals during 2024, headlined by:
• The $100m sale of solar retailer, Arkana Energy Group’s, to Germany-based 1komma5⁰.
• Noja Power, a switchgear manufacturer, securing $60m from Ellerston Capital for an undisclosed stake, ahead of reported plans for a dual track sale and IPO process.
Packaging and material handling companies also attracted significant investor interest.
• Pitcher’s client, Hyne Group, followed its UK-majority owner, James Jones and Sons, into the pallet market with the acquisition of Rodpak in Victoria and Pinetec in WA.
• Signet, a supplier of packaging products, was acquired by Spicers Group Packaging which is part of the Japaneselisted KPP Group Holdings.
• Finnish-based K.Hartwall strengthened its presence in Australia through the acquisition of Retailquip, the regional distribution partner for its material handling equipment.
2023
from 6 deals from 9 deals
We see Retailquip becoming a hub for us to develop our position within the APAC region, where the need for efficient logistics solutions is greater than ever. Furthermore, our intention is to build a future stronghold for Automation in Australia.
Industrials deal volume and value breakdown by year
Jerker Hartwall, CEO – K.Hartwall
Business services
Broad services boom
Queensland Business services experienced an M&A boom, with its 31 deals marking the highest level of activity since 2015 and surpassing the trailing 10-year average of 27 deals.
The surge in deals within Business Services was widespread, with many subsectors experiencing increased activity. The most active areas were Business Consulting (5 deals), Advertising (4 deals), Childcare (3 deals) and Office Services and Supplies (3 deals).
While there were many undisclosed deals in Business Services, the largest transactions in 2024 were:
• ASX-listed Johns Lyng Group’s acquisition of SSKB, a provider of strata and related services, along with Chill-Rite HVAC for a reported $74m.
• ALS continuing its strategic growth agenda by acquiring York Analytics Laboratories in the US for $65m and Wessling in Germany, accelerating growth in their international environmental testing services.
• Amentco Enterprise Group, a leading provider of electronic security and patient care communication systems, being acquired by ASX-listed Austco Healthcare for $13m.
• The Childcare sector saw significant transactions with Embark Early Education announcing the acquisition of eleven centres across Victoria and Queensland for over $25m.
There was significant consolidation activity in the Queensland advertising and marketing space, most notably:
• Fireworks Digital Signage merged with fellow Queensland company Signright, combining capabilities, print solutions, and clientele.
• Kuhn Corp Print & Packaging acquired Regal Signs & Designs in a strategic move to strengthen its position in the sign and display sector.
• Colony Group, an integrated advertising agency with clients across the South Pacific, acquired Map Creative Strategy.
Our focus on organic growth and consolidation has seen us grow to become Australia’s second largest strata manager and the addition of SSKB’s portfolio strengthens this position and opens up additional growth opportunities across the group.
Business services deal volume and value breakdown by year
Business services deal volume and values by size
Nick Carnell, CEO – Johns Lyng Group Australia
Construction
Engineering growth
M&A activity in Queensland’s Construction sector remains at record highs against long-term trends, fueled by firms seeking acquisitions that enhance their capabilities in complimentary services.
Engineering and consulting firms in Queensland continued to attract the interest of investors with 16 deals.
Notable deals in the civil engineering specific space included:
• Colliers Engineering furthering their growth through their partnership model by acquiring leading transportation engineering consultancy firm, TTM Group Pitcher Partners provided advisory services to the shareholders of TTM.
• Johns Lyng Group acquiring Keystone Group, a provider of insurance building and restoration services, including a commercial insurance arm.
• Sunshine Coast-based, Skyline Surveyors, joining forces with spatial, design and planning firm, Bennett + Bennett to form a partnership elevating the quality of services and enhanced capabilities to clients.
Within Construction Materials, ASX-listed Big River acquired Specialised Laminators (SLQ) to boost their decorative and function panel products.
Firms with strong capabilities in Environmental consulting also saw high transaction activity, including the following deals:
• Niche Environment and Heritage (Niche) acquired Ausecology, acting on their 5-year strategy to strengthen their core environmental capability in Queensland and grow their market share on the east of Australia
• US-listed, Montrose Environmental Group, acquired Epic Environmental to accelerate their growth in Australia and significantly expand their capabilities, relationships and services in market.
• Global sustainability consultancy firm, SLR, acquired FRC Environmental to bolster their ecology and biodiversity capabilities as well as Groundwork Plus, adding to their geoscience and development consultancy offering.
2023 2024 23 22 Deals Deals Total value Total value $742m $157m from 7 deals from 5 deals
The acquisition of TTM represents the third follow-on investment since Colliers entered Australia’s engineering consultancy market in 2022, highlighting the attractiveness of our unique partnership philosophy, enterprising culture, and long-term growth ambitions.
Construction deal volume and value breakdown by year
Construction deal volume and values by size
John Kenny, CEO – Colliers Asia Pacific
Consumer
Selective shopping
Deal activity in the Consumer sector continued its downward trend, however, market participants did not hold back where they saw quality businesses with strong brand recognition, customer loyalty and growth potential.
Despite recent years of cost of living pressures and low consumer confidence, the components of this broad sector are showing signs of recovery as inflation eases and unemployment remains low.
Global players in the Consumer sector have seized opportunities to expand their market share despite these headwinds. Notable deals included:
• Pitcher Partners supported the sale of Auto Parts Group (APG), a leading independent supplier of aftermarket automative collision repair parts, to global giant GPC.
• Eagers Automative (ASX: APE) acquired Alice Springs Toyota in a deal reported as $32m.
• Hancock & Gore (ASX: HNG), the owner of Mountcastle, invested $62m in UK-based independent school uniform retailer Schoolblazer to create a global uniforms platform leading the school wear segments in the UK, Australia and New Zealand.
• US-listed GoPro acquired Forcite Helmet Systems, a manufacturer of smart helmets, for $21m.
Deal activity continued in the food subsector resulting in several notable transactions:
• Grove Fruit Juice acquired Bega’s juice extraction facility and assets in Leeton for $11.4m.
• Popular Morningside seafood wholesaler, Fish Factory, became Japanese based Asahi Shokuhin’s first acquisition in Australia.
• Retail Food Group acquired Cibo Espresso, a South Australian-based network of coffee shops, for $2.7m.
Acquiring APG enables us to extend into a large and resilient sector of the automotive industry, one that has favourable tailwinds and which will benefit from GPC’s global scale and capabilities.
Rob Cameron, Managing Director and Group CEO – GPC Asia Pacific
Geographic spread
Where do Queensland businesses like to buy?
Queensland businesses executed 143 acquisitions over the year, an increase of 14 deals (11%) and in line with the 11-year average of 142 deals.
Queensland companies only ventured offshore to execute 21 deals (below the average 26). Notable deals included Simpro’s strategic purchase of Big Change (UK) and ALS’s acquisitions of USbased YORK Analytics Laboratories and two businesses in Germany.
In contrast to lower interest from interstate buyers, Queensland businesses executed their second highest number of acquisitions nationally. Notable deals included COSOL’s $23m acquisition of NSW-based Toustone, and RFG devouring SA cafe network, Cibo Espresso.
Queensland businesses continued their trend of fishing in their own backyard, completing 54 deals. Embark Early Education acquired 6 childcares in its home state and Healthia acquired fellow allied health aggregator, InterHealthcare.
Where is Queensland selling to?
Sell side transactions over the year increased by 15 (9%) to 183 deals, with the market moving back towards the 11-year average of 200 deals.
Queensland’s economy appears to be a safe haven from global disruptions. International acquirers have returned to Queensland at the highest rate since 2021, executing 51 deals, primarily with US and UK acquirers.
The below average level of interest from other Australian states persisted, with only 77 deals. This is significantly lower than the heady years of 2021 and 2022, which saw 120 and 124 deals, respectively.
from Private Equity firms was the lowest ever recorded by Deal Pulse, with only 1 deal. However, there was still significant bolt-on acquisition activity by PE-funded portfolio companies.
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