(Update to add stock movement in the headline and the seventh paragraph)
Tasmea (ASX:TEA) struck a deal to acquire JPS Group, an integrated services provider to the energy sector, for up to AU$75 million, according to a Wednesday filing with the Australian bourse.
The consideration includes an upfront payment of about AU$50 million at completion, consisting of about AU$24.5 million in cash and AU$25.6 million worth of Tasmea shares issued at AU$8.50 each.
The aggregate price also includes a cash earn-out of up to AU$25 million from fiscal 2027 through fiscal 2030, or up to about AU$6.3 million per year, subject to certain milestones including JPS achieving a maintainable earnings before interest and taxes target of at least AU$12 million per year.
The acquisition is expected to be immediately accretive to earnings per share, with about 5% forecast pro forma EPS accretion in fiscal 2026 assuming full 12-month ownership of JPS, Tasmea said.
The deal, anticipated to close on or around Aug. 1, diversifies Tasmea's earnings into the liquefied natural gas and critical energy infrastructure sectors.
Additionally, Tasmea affirmed its fiscal 2026 underlying net profit after tax guidance of AU$72.5 million on a standalone basis.
Its shares rose over 5% in recent trading on Wednesday, reaching their all-time peak.