PERTH: Tasmea Limited announced Wednesday it has entered into a definitive agreement to acquire JPS Group, an integrated energy services provider, for total consideration of up to A$75 million, in a move that diversifies its earnings into Australia’s growing liquefied natural gas and energy infrastructure markets.
The acquisition, expected to close around Aug. 1 subject to regulatory approvals, will see Tasmea pay approximately A$50 million upfront — comprising A$24.5 million in cash and A$25.6 million in Tasmea scrip — with an additional A$25 million in potential cash earn-out payments over four years. The earn-out is contingent on JPS achieving a maintainable EBIT target of at least A$12 million per annum, a statement said.
JPS Group, founded in 2018, serves a Tier-1 client base that includes Chevron, ConocoPhillips, INPEX, Mitsui, Santos, Shell and Woodside. The company holds more than 10 long-term Master Services Agreements and employs approximately 150 full-time equivalent staff, supported by a pool of more than 600 vetted specialists.
Tasmea Managing Director Stephen Young described the acquisition as a “defining step” in the company’s growth strategy.
“JPS is a specialist, high-quality, high-growth, owner-led business with a strong national and early-stage global footprint with strong competitive advantages,” Young said in a statement. “Combining JPS with Tasmea is forecast to be immediately EPS accretive.”
The transaction is expected to deliver approximately 5% pro forma EPS accretion in fiscal 2026, excluding synergies, on a full 12-month ownership basis. JPS’s forecast underlying EBIT for fiscal 2026 is approximately A$10 million at specialist margins, with the business having delivered organic revenue growth of roughly 100% compound annual growth rate from fiscal 2023 through fiscal 2026.
Tasmea said the acquisition provides revenue visibility in excess of 80% for fiscal 2027 and approximately 70% for fiscal 2028, underpinned by recurring revenue under long-term MSAs.
The company also reaffirmed its previously issued fiscal 2026 guidance, projecting underlying EBIT of A$117 million and underlying net profit after tax of A$72.5 million on a standalone basis. On a pro forma basis including JPS, Tasmea forecasts underlying EBIT of A$185 million and underlying NPAT of A$113 million.
All five of JPS’s founder-general managers will remain with the business under long-term employment contracts and will participate in Tasmea’s long-term incentive program following the earn-out period.
“The decision to partner with Tasmea was straightforward given the strong alignment in culture and a shared commitment to safety and delivery,” the JPS founders said in a joint statement. “Joining Tasmea allows us to retain our brand and leadership team and continue running the business as we have built it.”
The share purchase agreement was executed June 23. Completion remains subject to customary conditions, including approval from the Australian Competition and Consumer Commission under the country’s new mandatory merger control regime.
Tasmea, which operates 28 individual brands across specialist trade services, provides maintenance, shutdown and labour hire services to asset owners in the mining, oil and gas, infrastructure, power and renewable energy sectors.
