Perth-based Southern Cross Electrical Engineering has enhanced its portfolio, following the acquisition of a Sydney-based company.
Southern Cross Electrical Energy’s start to the 2025 calendar year has been a positive one.
On Monday, Graeme Dunn-led SCEE told the market it would acquire Sydney-based Force Fire Holdings for a total consideration package up to $53.5 million, which will be funded through its existing cash reserves.
This will include a $36.3 million payment to vendors, along with additional deferred and contingent-based payments, subject to various results and EBIT-based targets being met.
The deal is expected to be finalised in the next day or two.
Force Fire, which provides fire safety solutions to businesses across multiple sectors in New South Wales and Queensland, is expected to generate an additional $106 million in revenue for SCEE, along with an EBIT of $8.3 million.
SCEE said Force Fire's management stakeholders would remain on long-term ongoing contracts which would extend beyond the designated earn-out time period.
“The fire sector is an obvious adjacency to what we do and will complement the three structural tailwinds – infrastructure, data centres and electrification – to which the SCEE Group is exposed,” Mr Dunn said.
“As new sustainability regulations and Australian building codes come into force, further favourable tailwinds are expected as these drive refurbishment upgrades to existing buildings to meet compliance. These in turn will create opportunities for wider service offerings by us that integrate energy-efficient solutions with modern fire protection.”
Last month, SCEE announced its half-year earnings for the 2025 financial year – which included records for net profit, EBITDA and revenue.
As of December 31 2024, it also had $114.7 million cash and cash equivalents, up from $84 million six months prior.
Additionally, its interim dividend was increased by 150 per cent to 2.5 cents.
SCEE closed trade up 6 per cent to $1.66.
