Critical Infra agrees to acquire Ausi manufacturing biz

Executive Summary

• Critical Infrastructure Technologies Ltd. has entered into a binding term sheet to acquire 100% of a Western Australian precision manufacturing company to expand its advanced production capabilities and secure local sovereign manufacturing capacity for its Nexus 20 and future product lines.
• The acquisition provides immediate access to DISP (Defence Industry Security Program) accreditation, enabling eligibility for Defence tenders and projects requiring this critical security credential.
• The target business brings a robust earnings base with revenue exceeding $7.4 million AUD and EBITDA of more than $1.9 million AUD (based on 2025 projections), which is expected to make the CiTech Group cash flow positive from completion.

Key Details

• Transaction Structure: Binding term sheet to acquire 100% of issued shares in a Western Australian precision manufacturing company.
• Consideration: Total consideration of $7.7 million (Australian), plus standard net debt and working capital adjustments.
• Target Financials:
  • Revenue: Exceeding $7.4 million (Australian).
  • EBITDA: More than $1.9 million (Australian) (based on 2025).
• Strategic Benefits:
  • Establishes vertically integrated manufacturing capacity in Australia, improving speed to deployment, cost control, and scalability for defence-grade systems.
  • Provides immediate eligibility for Defence tenders and projects requiring DISP membership.
  • Strengthens sovereign manufacturing capability with state-of-the-art fabrication facilities.
• Target Company Profile:
  • Founded in 1997, based in Western Australia.
  • Over 25 years of experience in precision sheet-metal fabrication, CNC machining, and engineering solutions for defence, mining, infrastructure, and government sectors.
  • Certified to ISO 9001 (quality), ISO 14001 (environment), and ISO 45001 (safety).
  • Facilities include state-of-the-art laser cutting systems, CNC folding/bending machines, robotic welding technology, and advanced CAD/CAM integration.
  • Successfully achieved DISP accreditation.
• Integration and Timeline:
  • Founders will remain with the business through a structured transition and integration period.
  • Transaction is subject to due diligence, finalization of a share purchase agreement (SPA), and standard completion conditions.
  • The name of the acquired company is withheld until after due diligence concludes.
  • Completion is anticipated within 90 days of the term sheet's execution.

Notable Quotes

• "The business has established itself as a leading precision manufacturer supporting defence and heavy industry in Australia... This acquisition provides CiTech with a consistent revenue stream together with instant profitability, making the CiTech Group cash flow positive from completion. It ensures the group can accelerate production of our Nexus 20 and future product lines while strengthening Australia's sovereign industrial base." — Brenton Scott, Chief Executive Officer
• "Achieving DISP accreditation represents a significant milestone... It demonstrates our shared commitment to the security, integrity and resilience required to deliver mission-critical systems to Defence and Allied nations." — Brenton Scott, Chief Executive Officer