Tasmea Expands National Footprint with A$254 Million Maxim Group Acquisition

Tasmea Gains Strong Victorian Foothold in High-Growth Markets

Tasmea Limited (ASX:TEA) is making a decisive leap into Victoria’s booming Data Centre and Battery Energy Storage System (BESS) sectors with its A$254 million acquisition of Maxim Group. The deal, expected to settle around 1 July 2026 pending ACCC approval, brings a specialist electrical contractor with deep roots in Victoria’s infrastructure landscape into Tasmea’s national fold.

Maxim’s credentials include delivering over 450 projects with a workforce of approximately 600 full-time electricians, including a substantial cohort of high-voltage (HV) accredited and rail-inducted specialists. This positions Tasmea to capitalise on a forecast 22% compound annual growth rate (CAGR) in Victorian Data Centre capacity through 2030, alongside a 58% CAGR in National Electricity Market (NEM) utility-scale storage capacity.

Financials Signal Immediate Earnings Boost and Manageable Leverage

The acquisition structure involves approximately A$112 million in upfront cash and debt drawdown, alongside A$72 million in newly issued Tasmea shares to Maxim’s vendors at A$6.00 per share, with a price floor guarantee through mid-2027. An additional earn-out of up to A$70 million is contingent on Maxim achieving maintainable EBIT targets of A$50 million annually over the next three years.

Post-acquisition, Tasmea forecasts a pro forma FY26 underlying EBIT of A$175 million, up from A$128 million pre-deal, and a net profit after tax (NPAT) of A$107 million. This translates to a roughly 31% pro forma EPS accretion, positioning the combined electrical segment to generate around A$100 million EBIT and making Tasmea one of the largest electrical contractors listed on the ASX. The deal maintains a conservative balance sheet with forecast net leverage at approximately 0.8x pro forma EBITDA, below Tasmea’s 1.0x target.

Owner-Led Model and Long-Term Pipeline Provide Stability

Crucially, Tasmea will retain Maxim’s owner-led management team, including the Managing Director with over 30 years’ tenure and senior executives on multi-year contracts. The leadership’s equity stake and inclusion in Tasmea’s long-term incentive program, combined with a three-year earn-out linked to EBIT performance, aligns interests tightly with shareholders.

Maxim boasts a multi-year visible pipeline exceeding A$1.3 billion, with full revenue visibility for FY27 and approximately 85% for FY28. Its entrenched relationships with major Data Centre operators and participation in flagship Victorian infrastructure projects like the Metro Tunnel and West Gate Tunnel underpin a diversified revenue base with over 90% recurring customer contracts.

Strategic Diversification and National Platform Expansion

The acquisition not only diversifies Tasmea’s earnings into high-growth, future-focused sectors but also expands its geographic footprint into Victoria, a market previously underrepresented in Tasmea’s portfolio. This geographic expansion opens cross-selling opportunities for Tasmea’s broader specialist trade services, including Mechanical, Civil, and Water & Fluid, across Maxim’s extensive client base, which has national operations spanning NSW, WA, and SA.

Maxim’s internal HV expertise and rail accreditation also position Tasmea to tap into the rapidly growing utility-scale battery storage market, which is forecast to expand significantly over the coming decade. The combined entity’s scale and complementary capabilities could unlock operational and procurement synergies, although these remain unquantified at this stage.

Regulatory Approval and Integration Risks Ahead

The acquisition remains subject to customary conditions, including ACCC approval under Australia’s new mandatory merger control regime. While the deal’s financial metrics and strategic rationale are compelling, execution risks around integration and realising earn-out targets warrant close attention. The three-year earn-out structure, with a steep EBIT hurdle and clawback provisions, introduces performance contingencies that could affect future cash flows.

As Tasmea continues to pursue a programmatic acquisition strategy, this deal follows its recent expansion via the WorkPac acquisition, which boosted its workforce solutions capabilities and contributed to a 62% revenue surge in H1 FY26. The Maxim deal further cements Tasmea’s ambition to be a national leader in specialist electrical contracting amid Australia’s infrastructure and energy transition boom.