Macmahon to acquire Aspect Engineering Solutions

ASX-listed contractor Macmahon Holdings has taken another big step to further diversify and strengthen its mining value chain.

Michael Finnegan-led Macmahon, which has a market cap of $2.13 billion, told the market on Friday it had filed documents to acquire St George’s Terrace-based Aspect Engineering Solutions – in a deal, due to be finalised by the end of the calendar year, which could range between $75-90 million.

The market responded positively early in trade on Friday, with Macmahon shares up 6 per cent to $1.05 as of 10.29am AWST. 

Aside from an initial cash consideration package of $30 million upon the deal being completed, Macmahon will also provide a $6 million annual retention payment over five years.

Additionally, earn-out patments between $15 and 30 million are also on the table, in respect to base case or outperformance-based metrics being met over a three to five year period.

Macmahon said it would fund its acquisition through its existing cash reserves, which as of June 30, was $309.6 million, although it has an option of utilising scrip instead of cash in terms of payment for future retention and earn-out payments.

Aspect, which has 295 direct employees and 50 clients across the infrastructure, energy and resources sectors – generated $75 million in revenue during FY26 and has an unweighted work pipeline of approximately $225.8 million.

“Macmahon intends to operate Aspect as a standalone business, retaining its brand, leadership and client-focused operating model while progressively introducing Macmahon governance, systems, project controls and workforce support,” the company said. 

Mr Finnegan said the acquisition was critical, as the contractor eyes adding additional mineral-based processing services into its operation.

“The acquisition is expected to be accretive for Macmahon shareholders from inception and has been structured to align consideration with retention and future earnings performance,” he said.

“Importantly, the investment case is attractive on a standalone basis. 

“Aspect also provides a platform to accelerate the development of our minerals processing service offering, which is a strategic priority for Macmahon. 

“We look forward to working with the Aspect team to realise the opportunities created by bringing our complementary capabilities together.”