Company Interview / Tasmea diversifies into data centre contracting

Key points:

Tasmea acquires Maxim Group to accelerate entry into data centre constructionYoung targets 15–25% EBIT growth per business through organic expansion and M&AStrategy focuses on buying sector leaders, retaining management and driving cross‑selling

Tasmea’s acquisition of Victoria-based Maxim Group, valued at up to $254 million, is set to reshape the group’s growth profile, according to Stephen Young, Tasmea managing director. Young states the deal marks a significant diversification from Tasmea’s traditional mining services and oil and gas exposure into the fast‑growing data centre construction market. He says that Maxim is a leading electrical services provider to data centre projects and that the acquisition positions Tasmea as the largest listed electrical services provider in Australia.

Young views data centres as one of the strongest sectors in the country, driven by hyperscalers such as Amazon and Microsoft, where demand for capacity currently exceeds supply. He highlights the speed and scale of capital deployment as “eye‑watering” and argues that this dynamic creates substantial work opportunities throughout the supply chain. Existing Tasmea businesses such as WorkPac and Sigma Power Services are expected, in his view, to benefit via cross‑selling, particularly in high‑voltage electrical work.

Outlining Tasmea’s “twin pillar” strategy, Young emphasises a blend of organic and acquisition-driven growth. He targets EBIT growth of at least 15% per annum per business, while avoiding growth above 25% to protect quality. He prefers acquiring number one or two owner‑operator businesses, leaving brands and management intact, and credits this approach with delivering strong earnings per share growth over the past five years.