Tasmea’s $9M Vertex Deal Set to Boost EPS by 3%

Strategic Acquisition to Broaden Service Footprint

Tasmea Limited (ASX, TEA) has announced its agreement to acquire the Vertex Group, comprising Vertex Power & Process Pty Ltd and VTX Group Services Pty Ltd, in a move that significantly broadens its specialist electrical services portfolio. The acquisition, valued at approximately A$9 million upfront with potential earn-out payments of up to A$2.75 million over three years, is designed to deepen Tasmea’s presence in the electrification industry, particularly in high voltage and portable power solutions.

Vertex Group operates across regional New South Wales, Victoria, and South Australia, servicing critical sectors including utilities, mining, and renewable energy. This geographic and sectoral expansion aligns with Tasmea’s strategy to grow its footprint in essential infrastructure services, leveraging Vertex’s established customer relationships and recurring revenue streams.

Financial Upside and Synergies

The acquisition is expected to be earnings per share (EPS) accretive by around 3%, reflecting Vertex Group’s anticipated EBIT exceeding A$2.5 million annually under Tasmea’s ownership. The deal’s structure includes a mix of cash, share issuance, and contingent earn-out payments tied to future performance, underscoring Tasmea’s disciplined approach to value creation.

Integration plans place Vertex Group within Tasmea’s Electrical Services Segment, specifically as a bolt-on to ICE Engineering. This move is expected to unlock multiple synergies, such as cross-selling opportunities with existing subsidiaries like Sigma Power Services and Future Engineering, enhancing service offerings to shared customers and expanding the group’s capabilities in high voltage engineering, powerline infrastructure, and industrial pumping solutions.

Leadership Continuity and Cultural Fit

Importantly, the founders of Vertex and VTX, Dave Parker and Brent Carthew, will remain in leadership roles post-acquisition, ensuring continuity in service quality and company culture. Both parties have expressed optimism about the partnership, highlighting shared values around safety, quality, and investment in people, which bodes well for a smooth integration and sustained operational performance.

Stephen Young, Managing Director of Tasmea, emphasized the strategic nature of the acquisition, noting the strong regional presence and long-term client relationships that Vertex brings. This acquisition not only enhances Tasmea’s national capability but also positions the company to take on more complex projects and deliver greater value to its clients.

Looking Ahead

Completion of the acquisition is anticipated in mid to late July 2025, with integration activities planned to minimize disruption. The deal is funded through a combination of cash reserves, existing finance facilities, and share issuance, reflecting Tasmea’s robust financial position and confidence in the growth prospects of the combined entity.

Overall, this acquisition marks a significant step in Tasmea’s growth trajectory within the electrification and power services sector, reinforcing its position as a leading provider of specialist trade services across Australia’s critical infrastructure landscape.