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Electrical and telecommunications infrastructure provider Mayfield Group (ASX: MYG) will bolster its manufacturing capability with the $7 million acquisition of fellow South Australian company BE Switchcraft, whose vendor and managing director Anthony Spadavecchia will stay with the business on a long-term contract.
Spadavecchia will receive $5 million in cash and $2 million in shares for the sale of BE Switchcraft, a company he acquired in 2017 which has been building switchboards since 1961.
With 70 full-time employees, Royal Park-based Switchcraft manufactures switchboards that are deployed in significant infrastructure projects across Australia, with forecast revenue of $20 million and EBIT of $1.8 million in FY25.
In addition to its expertise in power factor correction energy management systems, and profile cutting services, Switchcraft also specialises in lighting control and room automation - an area Mayfield emphasises will be complementary to its offering as it caters to rising demand for electrical infrastructure in data centre and AI applications.
Salisbury-based Mayfield, also a legacy South Australian company founded in 1936, believes the combined group will provide a comprehensive offering unmatched by competitors in the Australian market thanks to a combination of its critical power solutions and BE Switchcraft's energy management systems.
"This strategic acquisition strengthens our position in Australia's critical electrical infrastructure sector and expands our commercial market capabilities," says Mayfield Group managing director Andrew Rowe.
"BE Switchcraft's expertise in lighting control, room automation, and energy management systems perfectly complements our existing portfolio and aligns with our strategy to power Australia's sustainable future.
"We're particularly pleased that Anthony Spadavecchia and the BE Switchcraft team will continue with the business, ensuring continuity while bringing their valuable expertise to the broader Mayfield Group. Together, we're uniting two proud Australian manufacturing traditions to address growing demand for advanced electrical infrastructure in an increasingly electrified world."
Switchcraft's local manufacturing presence was a key attraction for Mayfield, noting that while multinational competitors focus on standardised imported products, enhanced Australian manufacturing capabilities enable Mayfield to o offer customised solutions with faster turnaround times and local technical support.
The group also expects immediate earnings accretion for shareholders with positive EBIT contribution in FY26, as well as enhanced growth opportunities in the commercial sector.
Mayfield also claims team members from both organisations will benefit from expanded career development opportunities across diverse sectors, while suppliers will see increased collaboration potential as its expanded operations require additional materials and components.
The announcement comes two months after Mayfield revealed it had secured $27 million in data centre contracts to supply 90 switchboards, lifting the group's work in hand (WIH) to $125 million for a timeline to FY27.
"These contracts represent a significant milestone in our growth strategy, reinforcing our position as a key player in Australia's electrical infrastructure sector," Rowe said at the time in April.
"The data centre market offers significant opportunities as Australia continues to expand its digital infrastructure to support AI computing needs."
In February the company reported a 34 per cent year-on-year increase in half-yearly revenue to $52 million with profit before tax (PBT) of $2.8 million for the period.
MYG shares are currently up 4.81 per cent at $1.09.
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