PERTH: Tasmea Limited (ASX: TEA) announced Tuesday it has entered into a share purchase agreement to acquire Maxim Group Australia Pty Ltd, a specialist electrical contractor, for up to 254 million Australian dollars, in a move that significantly expands its national footprint across mining, electrification, energy, data centers and infrastructure.
The acquisition, expected to settle around July 1, 2026, subject to ACCC approval under Australia’s new mandatory merger control regime, includes an upfront payment of 184 million dollars — comprising 112 million dollars in cash and debt and 72 million dollars in Tasmea scrip issued to vendors at 6 dollars per share.
An additional earn-out of up to 70 million dollars in cash is payable across fiscal years 2027, 2028 and 2029, contingent on Maxim achieving a maintainable EBIT target of at least 50 million dollars annually.
“The acquisition of Maxim Group is a defining step in Tasmea’s programmatic growth strategy and establishes Tasmea as a leading national specialist electrical platform exposed to the highest-growth structural markets in the Australian economy,” Tasmea Managing Director Stephen Young said in a statement.
The deal values Maxim at an enterprise value of approximately 254 million dollars, representing an EV/EBIT multiple of about 5.4 times fiscal 2026 estimated underlying EBIT of roughly 47 million dollars.
Tasmea said the acquisition is forecast to be immediately accretive to earnings per share, with pro forma EPS accretion of approximately 31% in fiscal 2026, excluding synergies. Post-completion, Tasmea’s Electrical segment EBIT is expected to be about 100 million dollars.
Maxim Group, a Victoria-based contractor with roughly 600 full-time staff, has delivered more than 450 projects and is active on about 30 projects across data centers, major government infrastructure and battery energy storage systems. The company has an identified project pipeline exceeding 1.3 billion dollars, providing full revenue visibility for fiscal 2027 and about 85% visibility for fiscal 2028.
Maxim’s leadership team, including Managing Director Paul Murray with more than 30 years of tenure, will remain with the business under long-term employment contracts. The vendors will hold 72 million dollars in Tasmea scrip and are subject to a three-year earn-out.
“The decision to sell is a complex one, but selecting Tasmea as the preferred party was straightforward given the alignment in culture and a shared commitment to how the business should operate,” Murray said. “This allows us to retain our brand and leadership team and continue running the business as usual, supported by Tasmea’s balance sheet, workforce capability and corporate services.”
Following the transaction, Tasmea’s pro forma net debt to fiscal 2026 estimated EBITDA is approximately 0.8 times, below the company’s target leverage range of 1.0 times. Tasmea reconfirmed its standalone fiscal 2026 guidance of 117 million dollars in underlying EBIT and 72.5 million dollars in underlying net profit after tax.
