Tasmea Announces $254M Maxim Acquisition to Build National Electrical Platform
Tasmea acquires Maxim Group in $254 million deal to build national electrical platform
Tasmea Limited (ASX: TEA) has announced the acquisition of 100% of Maxim Group Australia Pty Ltd for total consideration of up to A$254 million, positioning the company as a leading national specialist electrical platform with direct exposure to five structurally growing end-markets: Mining, Electrification, Energy, Data Centres and Infrastructure. The deal includes three wholly-owned Maxim subsidiaries: Maxim Electrical Services, Maxim Infrastructure and Maxim Management Group. Settlement is targeted on or around 1 July 2026, pending ACCC approval under Australia’s new mandatory merger control regime, with the transaction forecast to deliver approximately 31% pro forma EPS accretion in FY26e on an ex-synergies basis.
Why Maxim?
Maxim Group brings substantial operational scale and a high-visibility pipeline to the combined group. Key attributes include:
- 450+ projects delivered; approximately 600 full-time staff; approximately 30 active projects at present
- A deep cohort of HV-accredited and rail-inducted specialists, including 200+ VEDN-accredited personnel
- An identified pipeline in excess of A$1.3 billion, providing full revenue visibility for FY27 and approximately 85% revenue visibility for FY28
- Organic revenue growth of approximately 70% CAGR from FY24A to FY26e
- Headquartered in Victoria, with active exposure to NSW, WA and SA
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Deal structure and financial impact at a glance
The total consideration of up to A$254 million is structured across three components: upfront cash, upfront scrip, and a performance-linked earn-out.
The upfront cash component of approximately A$112 million will be funded through Tasmea’s existing cash reserves and debt facility drawdowns. The scrip component comprises 12 million new TEA shares issued to vendors at A$6.00 per share, supported by a Floor Price Guarantee of A$6.00 per TEA share to 30 June 2027, providing vendors with downside protection over the guarantee period.
The earn-out mechanism provides for up to A$70 million in additional cash payments across FY27, FY28 and FY29, capped at approximately A$23.33 million per year. Each annual payment is conditional on Maxim achieving a Maintainable EBIT of ≥A$50 million per annum. An A$2-for-A$1 reduction applies for any shortfall below the hurdle, with a nil earn-out reached at an EBIT floor of A$38.3 million. A cumulative catch-up provision applies if cumulative EBIT across the three years reaches A$150 million.
| Component | Amount | Form | Condition | Timing |
|---|---|---|---|---|
| Upfront cash | ~A$112 million | Cash / debt drawn | Payable at settlement | ~1 July 2026 |
| Upfront scrip | A$72 million | 12 million new TEA shares at A$6.00 | Floor Price Guarantee to 30 June 2027 | At settlement |
| Earn-out (per year) | Up to A$23.33 million | Cash | Maintainable EBIT ≥A$50 million p.a. | Sep 2027, 2028, 2029 |
| Total consideration | Up to A$254 million | — | — | — |
The financial upside in numbers
The acquisition delivers a compelling set of financial metrics for Tasmea shareholders:
- EV/EBIT multiple: approximately 5.4x FY26e, based on Maxim’s FY26e Underlying EBIT of approximately A$47 million
- Post-deal Electrical segment EBIT: approximately A$100 million, positioning Tasmea as one of the largest electrical contractors on the ASX
- Post-deal leverage: net debt to pro forma FY26e EBITDA of approximately 0.8x, below Tasmea’s target leverage range of 1.0x pro forma Underlying EBITDA
- Pro Forma FY26 Underlying EBIT: A$175 million (pre-Maxim: A$128 million)
- Pro Forma FY26 Underlying NPAT: A$107 million (pre-Maxim: A$78 million)
- Standalone FY26 guidance reconfirmed: Underlying EBIT of A$117 million; Underlying NPAT of A$72.5 million
It is worth noting that Maxim’s earnings contribution flows into FY27 Group reported results, not FY26 reported earnings, given settlement is targeted on or around 1 July 2026.
Why data centres, BESS and infrastructure are the right markets to be in
The structural growth backdrop underpinning this acquisition spans three distinct, high-demand sectors.
Australia’s data centre market is forecast to expand at approximately 22% CAGR from CY25 to CY30, according to DC Byte and Data Centres Australia. Maxim has a multi-year track record delivering data centre projects for one of Australia’s largest DC operators, with more than 7 years of forward pipeline visibility in Victoria already established with that client.
Battery Energy Storage Systems (BESS) are large-scale facilities that store electricity generated from renewable sources for dispatch when needed. The Australian Energy Market Operator (AEMO) forecasts 58% CAGR in NEM utility-scale storage capacity between FY25 and FY30. Maxim’s internalised high-voltage (HV) capability and established relationships with leading BESS developers position the business to capture a meaningful share of that growth. HV accreditation refers to the specialist licensing and training required to safely design, install and commission high-voltage electrical infrastructure; it is difficult and time-consuming to replicate at scale, creating a genuine competitive barrier and underpinning sticky long-term customer relationships.
On the major infrastructure side, Maxim is actively delivering work across some of Victoria’s largest flagship programmes: the Metro Tunnel, West Gate Tunnel, North East Link and Suburban Rail Loop. These are current delivery credentials, not pipeline speculation.
Geographic expansion adds a new growth lever
Maxim’s Melbourne headquarters establishes a Tasmea presence in Victoria, providing a strategic base in Australia’s second-largest state. The combined group can now offer Maxim’s client base access to Tasmea’s full specialist services suite across Electrical, Mechanical, Civil, and Water & Fluid disciplines. The national platform also enables Tasmea to service Maxim clients operating across NSW, WA and SA.
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Owner-led model preserved and aligned to performance
A key feature of the transaction is the retention of Maxim’s leadership team, which has built the business over multiple decades. Four senior leaders are joining on long-term employment contracts: the Managing Director (30+ years tenure), the Estimating Director (26+ years), the Infrastructure Director (9+ years), and the Operations Manager.
Vendor alignment is structurally reinforced through A$72 million in Tasmea scrip (12 million shares at A$6.00) and the three-year earn-out tied to Maintainable EBIT performance. Following the earn-out period, executives will join the Tasmea long-term incentive (LTI) programme, extending alignment across the full integration phase.
Stephen Young, Managing Director, Tasmea
“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.”
Paul Murray, Managing Director, Maxim Group
“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.”
What happens next
Key milestones from this point include:
- ACCC approval required under Australia’s new mandatory merger control regime
- Settlement targeted on or around 1 July 2026
- Maxim earnings to contribute to FY27 Group results
- Investor briefing: Tuesday, 2 June 2026 at 9:15am AEST, with the webcast available at tasmea.com.au
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