Southern Cross buys fire and HVAC firm Entire for up to $78.1M
What's the deal? Southern Cross Electrical EngineeringDealroom has a profile for this one. Try Dealroom → (ASX: SXE) has agreed to acquire Entire Operations, a Melbourne-based fire protection and mechanical services provider, for up to US$72.5M. The structure comprises US$45.3M in upfront cash, with the balance tied to earnings targets over three financial years. SCEE will fund the deal from existing cash reserves.
What's the endgame? The acquisition fills a geographic gap in SCEE's national fire services platform, adding Victorian coverage to its existing presence in New South Wales and Queensland. It also brings HVAC — a discipline SCEE has not previously offered.
Why now? SCEE frames HVAC as a logical adjacency, citing shared exposure to data centres, energy efficiency and electrification. Data centres made up roughly 25% of Entire's FY26 revenue.
"Mechanical (HVAC) is a logical adjacency for SCEE given the attractive sector tailwinds we are both exposed to with significant investment in data centres, energy efficiency and electrification," SCEE managing director Graeme Dunn said. Entire managing director Rod Sekulich called the deal "the start of an exciting new chapter."
Deal structure: US$16.7M in base earn-out payments hinges on Entire posting at least US$11M in EBIT in each of FY27, FY28 and FY29. A further US$10.5M is available for outperformance, with the maximum payout requiring at least US$17.8M EBIT in FY29.
At the base level, the deal implies 5.5 times FY26 EBIT; at maximum outperformance, the multiple falls to 4.1 times FY29 EBIT. Existing executive shareholders will stay on long-term contracts.
The numbers: Entire generated US$123.6M in revenue and US$11.3M in EBIT in FY26, with more than 490 staff across Victoria and Queensland. Recurring maintenance and minor works make up about 35% of its revenue. SCEE expects at least 18% EPS accretion on a pro forma FY27 basis and has lifted FY27 EBITDA guidance to at least US$71.2M.
What could go wrong? Completion remains subject to Australian Competition and Consumer Commission waiver or approval, no material adverse change, and release from Entire's existing financial arrangements. The deal is expected to close around November 1.
The signal: The acquisition reflects how engineering contractors are consolidating to ride the data centre and electrification boom, bundling recurring maintenance alongside project work to steady revenues.
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Image credit: U. S. Fish and Wildlife Service - Northeast Region
