Mayfield Acquires SMEC for $30M to Enter Underground Mining Infrastructure

Mayfield expands into underground mining with $30 million SMEC acquisition

Mayfield Group Holdings Limited (ASX: MYG) has acquired SMEC Power & Technology for up to $30 million, opening dedicated exposure to underground mining electrical infrastructure and international export markets. The transaction, expected to complete on 31 March 2026, marks the Mayfield Group SMEC acquisition as the company’s second strategic purchase in twelve months, following BE Switchcraft in August 2025.

SMEC supplies 85% of the top 20 WA gold producers and is forecast to generate $41 million in revenue and $6.0 million in EBITDA during FY26. The acquisition multiple of approximately 5x EBITDA reflects disciplined capital allocation at an attractive valuation.

MYG will fund the transaction from existing cash reserves of $49.2 million as at 31 December 2025, supplemented by a scrip component that aligns the seller with the company’s future performance. The acquisition strengthens MYG’s position across mining, renewables and data centre sectors.

What SMEC brings to Mayfield’s portfolio

SMEC Power & Technology designs, manufactures and installs underground electrical starter panels, switchboards and substations for mining operations. The business operates from facilities in Perth and Kalgoorlie, employing more than 100 staff supported by an experienced senior management team.

Founder and Managing Director Martin Law will remain with SMEC on a long-term contract post-acquisition, providing operational continuity and preserving customer relationships built over decades. Mr Law has established SMEC as a market leader servicing the majority of WA’s top gold producers.

Services spanning the full project lifecycle

SMEC’s capabilities extend across four operational pillars:

• Manufacturing: Specialised electrical products and equipment tailored for mining (underground and surface), utilities and infrastructure applications
• Projects: End-to-end electrical solutions spanning engineering, manufacturing, installation, commissioning and maintenance
• Site Services: Installation, maintenance and support of electrical services across projects throughout Australia
• Motor rewind: Kalgoorlie-based facility providing specialist electric motor rewinds, repairs and overhauls for mining operations

Understanding underground mining electrical infrastructure

Underground mining operations require specialised electrical equipment designed to function in harsh environments. Starter panels, switchboards and substations distribute power safely to mining equipment operating in confined spaces where conventional surface infrastructure cannot be deployed.

These systems must withstand extreme conditions including heat, dust, moisture and vibration whilst meeting stringent safety requirements. Underground mines operate 24/7, making equipment reliability critical to production continuity.

The mining industry is electrifying operations to reduce emissions and improve efficiency. As mines pursue ESG objectives, demand for sophisticated electrical distribution systems increases. SMEC’s established capabilities position (ASX: MYG) to capture this structural growth trend without requiring years of internal capability development.

Two new growth vectors for Mayfield

The Mayfield Group SMEC acquisition opens two distinct strategic opportunities that expand MYG’s addressable market.

Underground mining exposure

SMEC provides MYG with its first dedicated exposure to underground mining, a sector the company has not previously served. Underground mining is experiencing structural growth driven by increased demand for gold and critical minerals, which require increasingly sophisticated and specialised electrical infrastructure.

Gold production in Western Australia remains robust, whilst critical minerals including lithium, nickel and rare earths drive new underground development. SMEC’s dominant market position among WA gold producers provides immediate access to established customer relationships and recurring revenue streams.

International export markets

SMEC has an established export channel, with equipment currently purchased by mining companies operating across Africa and Asia. This provides MYG with its first meaningful international revenue exposure and a platform for offshore growth without the capital intensity of establishing overseas operations.

The business supplies products domestically and internationally, creating optionality for geographic expansion. African and Asian mining markets continue developing resources that require the same electrical infrastructure SMEC supplies to Australian operations.

Transaction structure and funding

The acquisition is structured to balance upfront consideration with performance-linked payments, providing downside protection whilst incentivising continued operational excellence.

1. Upfront consideration (70%): $21 million comprising $14.7 million cash and approximately $6.3 million in MYG shares (2.5 million shares)
2. Earn-out (30%): Up to $9 million, subject to FY26 performance targets, comprising 70% cash and 30% MYG shares (1.1 million shares)
3. Share issue price: $2.5315 (10-day VWAP)
4. Escrow: All shares subject to 24-month escrow from issue date
5. Completion: Expected 31 March 2026

The earn-out structure can only be reduced to $nil and cannot reduce the upfront consideration, protecting MYG from overpayment risk. Earn-out performance targets must be finalised by 31 August 2026.

MYG will fund the cash portion from existing reserves of $49.2 million as at 31 December 2025, which includes funds raised via private placement and share purchase plan intended to facilitate acquisitions. No debt will be raised to fund the transaction, maintaining balance sheet strength.

The scrip component aligns Martin Law and SMEC shareholders with MYG’s future performance whilst preserving cash for working capital and future opportunities.

Synergies with renewables and data centres

SMEC’s kiosk substation capabilities have direct application across MYG’s existing renewables and data centre sectors, creating immediate cross-selling opportunities.

Renewable energy projects increasingly require decentralised, modular substations for grid-tie and step-down applications. Solar and wind farms need multiple distribution points across dispersed installations, with kiosk substations providing cost-effective, factory-assembled solutions that reduce on-site construction time.

Data centres are adopting modular, prefabricated on-site substations as standard. Hyperscale facilities require rapid deployment of electrical infrastructure to support compute expansion, with prefabricated units delivering faster installation than traditional substation construction.

SMEC’s established product range aligns directly with both trends. The business’s capabilities complement Mayfield Industries (modular electrical manufacturing), BE Switchcraft (commercial electrical solutions) and Mayfield Services (installation and maintenance), creating a more comprehensive offering spanning design, manufacturing, installation, commissioning and ongoing maintenance.

CEO outlines acquisition rationale

Andrew Rowe, Group Chief Executive Officer

“SMEC is a high-quality, profitable business with a dominant market position, servicing 85% of the top 20 WA gold producers. The acquisition opens two exciting new dimensions for Mayfield: underground mining and international export markets. With Martin Law staying on to lead the business, we have strong confidence in operational continuity and continued growth. SMEC’s capabilities also extend naturally into renewables and data centres through its kiosk substation products, creating further synergies with our existing operations. Combined with our capabilities in data centres, renewables, defence and critical infrastructure, this acquisition further strengthens Mayfield as the essential foundation upon which Australia’s progress is built.”

Mr Rowe emphasised the retention of Martin Law as critical to maintaining customer relationships and operational leadership. The transaction reinforces MYG’s commitment to disciplined, value-accretive growth following the successful integration of BE Switchcraft.

What’s next for Mayfield

Completion of the Mayfield Group SMEC acquisition is scheduled for 31 March 2026, subject to customary conditions. The transaction will be effected via an asset sale agreement, with MYG acquiring all business assets and operations as a going concern, including plant, equipment, inventory, goodwill, intellectual property and customer contracts on a cash-free, debt-free basis with normal working capital.

Earn-out performance targets must be finalised by 31 August 2026, providing clarity on potential additional consideration within five months of completion.

Martin Law’s long-term contract ensures customer relationship continuity and operational leadership throughout the integration period. SMEC’s senior management team will remain with the business, minimising execution risk.

MYG’s balance sheet remains strong post-transaction, with capacity for further disciplined acquisitions. The company has completed comprehensive financial due diligence on SMEC, with no material financial issues or adverse findings identified. This marks the second strategic acquisition in twelve months, signalling an active M&A pipeline aligned with MYG’s objective of becoming Australia’s pre-eminent electrical infrastructure group.

Want the Next Infrastructure Breakout in Your Inbox?

Join 20,000+ investors receiving FREE breaking ASX news and in-depth analysis delivered within minutes of release. Click the “Free Alerts” button at StockWire X to get real-time alerts on infrastructure, manufacturing and industrial stocks the moment market-moving announcements hit the ASX.