Genusplus Eyes Near Double in EBITDA With $325M MPC Kinetic Acquisition
Genusplus strikes transformational A$325m deal to acquire MPC Kinetic
In its 20 May 2026 investor presentation, Genusplus Group (ASX: GNP) outlined a binding agreement to acquire 100% of MPC Kinetic Holdings Pty Ltd (MPK) for an upfront cash consideration of A$325m, with total consideration reaching up to A$400m including deferred and earn-out payments. The presentation framed this as a defining strategic move, accelerating Genus’ diversification into gas, water, and renewable energy infrastructure services.
Management highlighted two headline financial metrics: a ~59% pro-forma FY26F EPS(A) accretion and a ~99% uplift in pro-forma EBITDA relative to Genus on a standalone basis. The acquisition is to be partially funded by an A$200m (before costs) institutional placement at A$9.25 per share.
When big ASX news breaks, our subscribers know first
Understanding the deal structure
How the consideration is structured
The presentation detailed a three-part consideration structure:
- Upfront cash consideration: A$325m (cash free, debt free, normal working capital basis)
- Deferred cash consideration: A$25m payable 6 months post completion
- Earn-out cash consideration: up to A$50m, structured as follows: nil payable if FY27 EBIT is A$60m or below; full A$50m payable if FY27 EBIT reaches A$70m or above; pro-rata for results in between
- Maximum total consideration: A$400m
The earn-out structure was presented as investor-friendly risk mitigation. Should MPK’s FY27 earnings prove softer following the completion of major renewable projects, Genus carries reduced downside exposure, with the earn-out calibrated directly to MPK’s near-term earnings variability.
How the acquisition is being funded
The presentation outlined the sources and uses of funds as follows:
| Sources | A$m | Uses | A$m |
|---|---|---|---|
| Placement proceeds | 200 | Upfront consideration | 325 |
| Debt drawdown / existing cash reserves | 164 | Deferred consideration | 25 |
| Transaction costs (incl. raising costs) | 14 | ||
| Total Sources | 364 | Total Uses | 364 |
The earn-out of up to A$50m is excluded from the above and will be funded via operating cash flows and undrawn debt facility at the time of payment. To support the transaction, Genus upsized its existing Revolving Syndicated Facility Agreement with Commonwealth Bank of Australia, HSBC, and National Australia Bank from A$429m to A$549m. On an upfront consideration basis, the pro-forma balance sheet remains conservative, with Net Debt / normalised EBITDA of 0.01x.
Who is MPC Kinetic and why does it matter?
A leading Australian infrastructure services business
The presentation introduced MPK (formerly Murphy Pipe and Civil, established 2011) as a leading provider of gas gathering, well servicing, major pipeline, and renewable energy construction services to Tier 1 asset owners across Australia. Key facts outlined in the presentation include:
- Headquartered in Brisbane, QLD, with an approximately 900-strong skilled workforce
- Majority of revenue derived from onshore gas gathering in the Surat Basin, supporting ongoing LNG supply
- Tier 1 client base including Santos, Origin, Arrow Energy, QGC, and Vestas
- Approximately 69% of FY25 revenue from schedule of rates, cost reimbursable, or target cost work, reflecting a lower-risk contract profile
- Approximately A$99m of PP&E on the balance sheet as at 31 March 2026
MPK’s financial track record
The presentation walked through MPK’s three-year revenue and earnings trajectory, demonstrating consistent growth in FY24 and FY25, with further expansion forecast in FY26:
- FY24: Revenue A$517m, EBITDA A$72m, EBIT A$48m
- FY25: Revenue A$533m, EBITDA A$104m, EBIT A$83m
- FY26F: Revenue A$547m, EBITDA A$116m, EBIT A$95m
Management noted that FY27 performance is expected to be lower than FY25 and FY26F, given that several major renewable projects have reached practical completion. MPK is currently in the tendering phase for a new pipeline of renewable projects. The earn-out structure was specifically designed to protect Genus against this known near-term variability in earnings.
Key acquisition metric
The acquisition is approximately ~59% EPS(A) accretive to Genus on a pro-forma FY26F basis, calculated using MPK’s three-year average EBIT of A$75m (FY24–FY26F).
Why gas infrastructure is an attractive long-term bet
Gas occupies a structural role in Australia’s energy security and transition, making MPK’s core revenue stream particularly relevant to long-term investors. The Surat Basin’s Coal Seam Gas (CSG) well numbers are forecast to grow from approximately 12,500 in 2024 to over 19,300 by 2040, underpinning durable demand for the gathering and well maintenance services that MPK provides.
Australia faces significant supply deficits on both the east coast and west coast gas markets, and global LNG demand is forecast to grow steadily through to 2050 while supply from existing fields declines. A shift in government policy has added further tailwind; the Queensland Government recently opened nine new areas for gas exploration across the Cooper/Eromanga and Bowen/Surat Basins. This is a structural, long-duration growth thematic rather than a cyclical trade.
The next major ASX story will hit our subscribers first
The investment case for Genus post-acquisition
Scale, earnings accretion, and complementary capabilities
The presentation detailed the combined entity’s pro-forma metrics on a FY26F basis:
- Pro-forma FY26F EBITDA: A$195m (up ~99% from Genus standalone A$98m)
- Pro-forma FY26F EBIT(A): A$153m (up ~96% from Genus standalone A$78m)
- Pro-forma ordinary shares: 203.1m (up only ~12% from 181.5m pre-deal)
- Pro-forma FY26F EPS(A): A$0.477 vs A$0.301 standalone, representing ~59% accretion
- Pro-forma Net Debt / normalised EBITDA: 0.01x (upfront consideration basis); 0.39x (full A$400m scenario)
Concurrent with the acquisition announcement, Genus upgraded its standalone FY26 earnings guidance. Normalised EBITDA guidance was revised to A$96m–A$100m (up from the prior guidance implying approximately A$91m, representing ~42–48% growth on FY25), and normalised EBIT(A) guidance was set at A$76m–A$80m.
Complementary capabilities unlock new project scope
A key strategic rationale highlighted in the presentation is the Civil Balance of Plant (CBOP) and Electrical Balance of Plant (EBOP) angle. MPK typically performs CBOP scope on renewable energy projects, whilst Genus performs EBOP scope. The combination allows Genus to self-perform both scopes when bidding on renewable projects, a meaningful competitive advantage that is expected to strengthen Genus’ service offering and appeal to end customers. MPK’s established experience in major water pipelines also provides Genus with an entry point into the water sector, broadening the combined entity’s addressable market.
Placement details and timetable
The presentation outlined the capital raising mechanics and key dates for the institutional placement:
- Placement price: A$9.25 per share (a 5.0% discount to the last closing price of A$9.74 on 15 May 2026; a 1.5% discount to the 5-day VWAP of A$9.39)
- New shares to be issued: up to 21,621,622 new ordinary shares
- Proceeds: up to A$200m (before costs); unconditional and single tranche
- Joint Lead Managers: Bell Potter Securities Limited and Euroz Hartleys Limited; Co-Manager: MA Moelis Australia
- Announcement of Transaction and Placement and Trading Halt: Monday, 18 May 2026
- Announcement of results of Placement and Genus resumes trading on ASX: Wednesday, 20 May 2026
- Settlement of Placement: Friday, 22 May 2026
- Allotment and expected commencement of normal trading of new shares: Monday, 25 May 2026
- Expected completion of transaction: 1 July 2026
Don’t Miss the Next Big ASX Industrials Move
Big News Blast delivers FREE breaking ASX news straight to your inbox within minutes of release, complete with in-depth analysis already done for you. Join 20,000+ investors who stay ahead of the market the moment announcements drop. Click the “Free Alerts” button to start receiving real-time coverage across ASX industrials and beyond.