Tasmea (ASX:TEA) has executed a share purchase agreement to acquire electrical services company Vertex Group.
The acquisition includes Vertex Power & Process and VTX Group Services and will be funded through a combination of cash reserves, existing finance facilities, the issue of Tasmea scrip, and deferred earn out payments, which are expected to be funded from future cash flows generated by the Vertex Group.
Completion of the acquisition is anticipated in mid-to-late July 2025.
Founders of the Vertex Group Dave Parker and Brent Carthew will remain in leadership roles post-acquisition.
The purchase consists of an upfront cash payment of $6.5 million and the issue of $2.5 million in Tasmea shares (714,286 escrowed shares at an issue price of $3.50 per share, subject to a price guarantee mechanism upon escrow release after 31 May 2026).
A contingent consideration includes earn-out payments of up to $2.75 million may be payable for the financial years FY26, FY27, and FY28, subject to Vertex achieving agreed EBIT targets in each year.
This equates to a maximum of $900,000 per annum.
Tasmea says the acquisition is consistent with the suitor’s strategy of acquiring “high-quality, trade-based specialist service businesses that are earnings accretive and culturally aligned”.
The acquisition is expected to deliver some 3% accretion to earnings per share.
Vertex is an electrical services provider specialising in high voltage services to utilities, mining, and renewables clients across regional and remote areas of Western New South Wales, Victoria, and South Australia.
The business supports long-term electricity transmission, mining, and renewable energy clients. VTX provides end-to-end pumping and portable power solutions to the mining, agriculture, industrial, and local council sectors across western New South Wales, Victoria, and South Australia.
Through strong partnerships, skilled staff, modern facilities, and a premium rental fleet, VTX secures recurring maintenance work and supports major regional projects.
Vertex and VTX will form part of Tasmea’s Electrical Services Segment, offering in high voltage services and portable energy solutions. Both businesses generate recurring revenue and enjoy deep, long-standing customer relationships across the mining, renewable energy, utilities, industrial, and local government sectors in regional New South Wales, South Australia, and Victoria.
The Vertex Group will be integrated as a bolt-on to ICE Engineering, under the leadership of Trent Northover.
Tasmea says the acquisition expands its regional footprint and deepens its expertise in servicing energy infrastructure and remote area projects.
Tasmea owns and operates 24 inter-dependent leading Australian diversified specialist trade skill services businesses focused on essential shutdown, programmed maintenance, emergency breakdown, and brownfield upgrade services of fixed plant for a blue-chip essential asset owner customer base.
The company provides outsourced specialist maintenance to fixed plant for essential industry asset owners in six growing industry sectors: mining and resources, oil and gas, defence, infrastructure and facilities, power and renewable energy, telecommunications, and retail, waste and water.
Write to Adam Orlando at Mining.com.au
Images: Vertex & Tasmea
