Tasmea Ltd Seals A$75M JPS Group Deal With 5% EPS Lift Forecast
Tasmea seals A$75m JPS Group buy, eyes LNG growth and 5% EPS lift
Tasmea Limited (ASX: TEA) has executed a Share Purchase Agreement to acquire 100% of JPS Group, a leading integrated services provider to the Australian energy sector, for total consideration of up to A$75 million. The transaction diversifies the Group’s earnings into the structurally growing LNG, gas and critical energy infrastructure markets.
The acquisition is forecast to be immediately EPS accretive, with approximately 5% forecast pro forma EPS accretion in FY26e, assuming full 12-month ownership of JPS in FY26e for illustrative purposes on a pro-forma basis. Tasmea has reconfirmed its standalone FY26 guidance alongside the announcement.
When big ASX news breaks, our subscribers know first
Inside the A$75 million deal structure
The consideration splits into an upfront payment at completion and a performance-based earn-out across subsequent years. Around A$50 million is payable upfront, comprising cash and Tasmea scrip, with the balance contingent on JPS hitting defined milestones.
The scrip component consists of 3,011,750 new TEA shares issued at A$8.50 per share, equating to A$25.6 million. This is the agreed consideration price for the issue, not a market quotation.
| Component | Amount | Form | Timing |
|---|---|---|---|
| Cash at settlement | ~A$24.5m | Existing cash reserves + debt facilities | At completion |
| Tasmea scrip | A$25.6m (3,011,750 shares @ A$8.50) | New TEA shares | At completion |
| Upfront total | ~A$50m | Cash + scrip | At completion |
| Earn-out | Up to A$25m (up to A$6.25m/yr) | Cash | Across FY27–FY30 |
| Total consideration | Up to A$75m | Cash + scrip | — |
The earn-out is subject to certain milestones, including JPS achieving a Maintainable EBIT target of ≥ A$12 million per annum.
What JPS Group brings to Tasmea
Founded in 2018, JPS has delivered 40+ projects across onshore, offshore and Floating LNG assets, accumulating over 500,000 safe working hours. The business operates with approximately 150 full-time equivalent staff, supported by a 600+ vetted specialist labour pool.
Its client base is a Tier-1 roster spanning Chevron, ConocoPhillips, INPEX, Mitsui, Santos, Shell and Woodside. Four strategic pillars underpin the rationale for the acquisition:
-
Tier-1 LNG client exposure: JPS works across more than 15 Major Hazard Facilities, with a number of sole-source contracting arrangements, and routinely sees initial project campaigns transition into ongoing asset maintenance and support services.
-
High recurring revenue: More than 10 long-term Master Services Agreements (MSAs) deliver revenue visibility in excess of 80% for FY27e and approximately 70% for FY28e, supported by the regularity of statutory shutdowns in a highly regulated sector.
-
Unique tech-enabled isolation: Through Safe Isolation Australia, JPS is the sole Australian distributor and execution partner for ValveTight’s patented Double Block & Bleed (DBB) Saver isolation technology under a 5+5 year agreement, enabling maintenance while plant remains online. International expansion opportunities have been identified in the USA and Africa.
-
Owner-led leadership retained: All five founder-General Managers, each averaging 20+ years of oil and gas experience, are staying on long-term employment contracts.
Understanding the LNG services opportunity
Because LNG and gas operators run within a highly regulated environment, statutory shutdowns and ongoing maintenance occur on a recurring, scheduled basis. This creates predictable, visible demand for specialist providers.
The numbers behind the investment case
The upfront enterprise value implies an EV/EBIT multiple of approximately 5x on JPS FY26e Underlying EBIT of approximately A$10 million. Management has forecast approximately 5% pro forma EPS accretion in FY26e, excluding synergies and incremental to the Maxim Group acquisition announced on 2 June 2026, assuming full 12-month ownership of JPS in FY26e for illustrative purposes on a pro-forma basis.
The JPS deal is the second major transaction Tasmea has announced in quick succession; the Maxim Group acquisition, struck on 2 June 2026 for up to A$254 million, is forecast to deliver approximately 31% pro forma EPS accretion in FY26e and lifts the combined group’s Electrical segment EBIT to approximately A$100 million.
Post-deal net debt to pro forma FY26e EBITDA is expected to sit at approximately 0.85x, within Tasmea’s target leverage range of around 1.0x pro forma Underlying EBITDA. JPS has delivered organic revenue growth of approximately 100% CAGR from FY23A to FY26e, with revenue forecast to double by FY29.
Alongside its acquisitions, Tasmea declared a Tasmea special dividend of 10 cents per share in early June 2026, returning approximately A$26.2 million to shareholders while maintaining net leverage of approximately 0.8x, illustrating the balance sheet headroom the group is carrying through its growth phase.
| Metric | Pre-JPS (incl. Maxim) | Pro Forma (incl. JPS) |
|---|---|---|
| FY26 Underlying EBIT | $175m | $185m |
| FY26 Underlying NPAT | $107m | $113m |
Separately, Tasmea reconfirmed its standalone FY26 guidance of Underlying EBIT of $117 million and Underlying NPAT of $72.5 million. The JPS transaction is expected to complete on or around 1 August 2026 and will contribute to FY27 Group earnings, not FY26.
Management’s view
Managing Director Stephen Young framed the transaction as a milestone in the Company’s broader expansion approach.
Stephen Young, Managing Director
“The acquisition of JPS Group is a defining step in Tasmea’s programmatic growth strategy and diversifies the Group’s earnings into the structurally growing LNG, gas and critical energy infrastructure sectors.”
Stephen Young, Managing Director
“JPS is a specialist, high-quality, high growth, owner-led business with a strong national and early-stage global footprint with strong competitive advantages, evidenced by its embedded relationships across a Tier-1 energy client base and high recurring revenues under more than 10 long-term MSAs. Combining JPS with Tasmea is forecast to be immediately EPS accretive, with approximately 5% forecast pro forma EPS accretion in FY26e incremental to the Maxim Group acquisition.”
Young also emphasised the retention of the owner-led structure that has built both businesses.
Stephen Young, Managing Director
“Critically, the acquisition preserves the owner-led model that has built both Tasmea and JPS. All five of JPS’s founder-General Managers are staying with the business, taking equity in Tasmea, and are incentivised through a four-year earn-out aligned to the delivery of A$12 million of Maintainable EBIT per annum.”
The JPS founders pointed to cultural alignment as central to the decision, noting the partnership “allows us to retain our brand and leadership team and continue running the business as we have built it,” supported by Tasmea’s balance sheet, workforce capability and corporate services.
The next major ASX story will hit our subscribers first
Timeline and what comes next
The transaction now moves towards settlement, subject to customary conditions precedent. Key dates and milestones include:
-
Share Purchase Agreement executed: 23 June 2026
-
Investor briefing led by CEO Mark Vartuli: 24 June 2026, 11:30am AEST
-
Settlement targeted: on or around 1 August 2026, subject to customary conditions precedent including ACCC approval under Australia’s new mandatory merger control regime
-
JPS earnings contribution begins: FY27
The acquisition adds a capital-light energy-services platform with global optionality across the USA and Africa to Tasmea’s group of 28 specialist services brands, while diversifying earnings into markets management has described as carrying long-term structural tailwinds.
Don’t Miss the Next ASX Industrials Deal Before the Market Moves
Big News Blast, the FREE alert service from StockWire X, delivers breaking ASX announcements directly to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already staying ahead of the market. Click the “Free Alerts” button to start receiving alerts the moment news breaks.