SSH Group Limited (ASX:SSH) entered into a binding agreement to acquire Karratha Machinery Hire for AUD 15 million on April 20, 2022. In related consideration AUD 10.5 million payable in cash at Completion for the hire equipment, AUD 4.5 million for all other assets being acquired and payable as AUD 2.25 million at Completion payable AUD 1.7 million in cash and AUD 0.56 million in shares with each share being issued at the 20-trading day VWAP prior to execution of the Agreement accounting for 2.39 million shares; AUD 2.25 million on the date 6 months after Completion payable AUD 1.7 million in cash and AUD 0.56 million in shares with each share being issued at the 20-trading day VWAP prior to the date 6 months after the date of Completion. SSH expects to announce the completion of the facility shortly and in time to meet the timing requirements under the Agreement. The transaction will be funded by a new equipment financing facility and existing cash reserves with completion expected to occur by Mid May 2022. Karratha Machinery will operate as wholly owned subsidiary of SSH Group on completion, and remain under the operational management of Karratha Machinery's highly experienced and reputable management team.

For the year ended June 30, 2021, Karratha Machinery reported revenue of AUD 6.3 million an EBITDA of AUD 3.83 million. The transaction is subject to SSH Group Limited conducting financial, taxation, commercial and legal due diligence in relation to Business, seller obtaining each of the Counterparty Consents, SSH Group Limited obtaining finance for the entire cash portion of the Consideration, Receipt of all third-party consents and regulatory approvals necessary in relation to the ownership and operation of the Business and the Assets and Shareholder approvals, Philip Patterson and the Purchaser agreeing terms for the employment or consultancy services of Patterson to the Purchaser, Such number of the Employees of the Business accepting employment offer made by Purchaser to the Employees under clause 9 as determined by the Purchaser in its absolute discretion, Steve Griffiths and the Purchaser agreeing terms for the employment as a manager of the Business on terms no less favorable than those currently employed in but for a period at least until December 31, 2023 and to include a 3-year restraint of trade clause. The completion expected to occur by May 16, 2022. The transaction is EBITDA, EPS, and margin accretive for SSH.