PERTH: Southern Cross Electrical Engineering Limited (ASX: SXE) announced Monday it has agreed to acquire Force Fire Holdings Pty Ltd, a leading provider of fire safety solutions in New South Wales and Queensland, for up to $53.5 million (AUD).
The deal, expected to close April 1, includes an upfront payment of $36.3 million, with additional deferred and contingent payments tied to earnings targets through fiscal year 2027.
Force Fire, founded in 2004, employs over 200 full-time staff and specializes in commercial and industrial fire safety systems, generating $106 million in revenue and $8.3 million in earnings before interest and taxes (EBIT) in FY25.
SCEE Group Managing Director Graeme Dunn called the acquisition a “natural adjacency” to the company’s core electrical engineering business, citing growth opportunities in fire safety regulations and building code updates. The transaction is projected to be earnings-accretive, with Force Fire forecast to contribute at least $10 million in EBIT annually from FY26 onward.
Force Fire’s management team will remain under long-term contracts, and the acquisition will be funded through SCEE’s cash reserves. Advisers on the deal include Moelis Australia, EY and K&L Gates.