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Industrial services group Tasmea Limited (ASX: TEA) has signed a binding agreement to acquire 100 per cent of Victoria-based specialist electrical contractor Maxim Group Australia for up to $254 million, in the company's largest acquisition to date and a major play in the growing data centre industry.
The deal comprises $184 million upfront, to be funded via cash and shares, with up to $70 million in additional cash earn-outs across FY27 to FY29 tied to Maxim achieving maintainable EBIT of at least $50 million per annum.
Maxim specialises in high-voltage electrical infrastructure, with deep exposure to the data centre construction boom sweeping Victoria and broader eastern Australia.
The company has delivered organic annual revenue growth of 70 per cent compounded from FY24 to FY26 and has an identified pipeline exceeding $1.3 billion.
The acquisition represents an enterprise value to EBIT multiple of 5.4 times Maxim's forecast FY26 underlying EBIT of $47 million, with EBIT margins described as broadly in line with Tasmea's existing electrical portfolio.
“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,” says Tasmea managing director Stephen Young.
“Maxim is a high-quality, owner-led business with deep customer relationships, a multi-year visible pipeline of more than $1.3 billion, strong electrical credentials in data Centre projects and one of Victoria’s largest rail-inducted specialist electrical workforces."
Young says that through the acquisition, Tasmea Group is forecast to deliver about $100 million of Electrical EBIT post-completion and an expected 31 per cent pro forma earnings per share accretion in FY26.
"Critically, the acquisition preserves the owner-led model that has built Tasmea and Maxim," he says.
"Maxim’s leadership team is staying with the business, taking equity in Tasmea, and is incentivised through a three-year earn-out aligned to the delivery of $50 million of maintainable EBIT per annum.
"We are delighted to welcome the Maxim team to Tasmea and look forward to supporting their continued growth through our corporate services platform and broader specialist trades capability.”
Tasmea forecasts the deal will lift its Electrical segment EBIT to about $100 million on a pro forma basis, with group pro forma FY26 EBIT of about $175 million and pro forma NPAT of $107 million.
Post-settlement net leverage is projected at 0.8 times pro forma FY26 EBITDA.
The company has reconfirmed standalone FY26 guidance of $117 million underlying EBIT and $72.5 million underlying NPAT.
“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," says Maxim Group managing director Paul Murray.
"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.”
Murray will remain with the business under the earn-out structure, preserving the operator-led model Tasmea applies across its portfolio.
The acquisition builds on an aggressive growth trajectory for Tasmea, which reported half-year FY26 revenue of $400.5 million - up 62.4 per cent - with underlying underlying NPAT of $26.5 million, up 31.8 per cent.
Maxim's growth has been propelled by surging demand for data centre construction in Victoria, where the state government has identified the sector as a strategic priority.
Tasmea is funding the $112 million cash component of the acquisition through existing debt facilities and cash reserves, while the balance will be funded by the issue of 12 million new shares at $6 per share, subject to escrow arrangements.
The earn-out structure, payable in cash across three tranches, is designed to retain Maxim's leadership team and incentivise continued performance through to FY29.
The acquisition is expected to complete by 1 July 2026.
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