Tasmea’s $60.7M WorkPac Acquisition Poised to Boost EPS and Market Reach
Tasmea Limited has entered a conditional agreement to acquire WorkPac Group for up to $60.7 million, aiming to enhance its workforce solutions and specialist trade services. The deal is expected to be accretive to earnings and strategically expand Tasmea’s footprint across Australia.
- Tasmea to acquire 100% of WorkPac Group for up to $60.7 million
- Combination of $22.7 million cash and $27.5 million equity in purchase price
- Expected 10% EPS accretion in FY26 excluding synergies
- WorkPac adds over 15 material Master Services Agreements and strong recurring revenue
- Transaction forecast to reduce Tasmea’s gearing ratio and be net cash positive
Strategic Acquisition to Expand Workforce Solutions
Tasmea Limited has announced a conditional agreement to acquire WorkPac Group Pty Ltd, a leading Australian workforce solutions provider, in a deal valued at up to $60.7 million. This acquisition represents a significant strategic move for Tasmea, aiming to bolster its specialist trade services and accelerate organic growth across its Electrical, Mechanical, Civil, and Water & Fluid segments.
The purchase price includes $22.7 million in cash and $27.5 million in equity, with the issuance of 5 million new Tasmea shares priced at $5.50 each. Additionally, up to $10.5 million in earn-out payments are contingent on WorkPac meeting earnings targets over the next two years. Completion is targeted around 1 December 2025, subject to customary conditions.
Enhancing Skilled Labour Capabilities and Market Reach
WorkPac brings a robust platform with more than 6,000 daily field team members and a portfolio of over 15 material Master Services Agreements, servicing more than 50 sites nationwide. Its strong recurring revenue base, with over 90% repeat customers, complements Tasmea’s existing operations and provides a competitive edge in sourcing and deploying specialist qualified personnel rapidly.
By integrating WorkPac’s advanced recruitment capabilities, Tasmea expects to deliver skilled labour certainty to its customers, particularly for time-critical large-scale shutdowns and complex projects. This synergy is anticipated to support Tasmea’s ambitious 15% per annum organic growth target and strengthen its position as a multidisciplinary specialist trade services provider.
Financial Upside and Operational Synergies
Financially, the acquisition is forecast to be accretive to Tasmea’s earnings per share by approximately 10% in FY26 on a pro forma basis, excluding identified synergies. WorkPac is expected to contribute a maintainable EBIT of $18 million annually, with EBIT margins exceeding 18% on net revenue. The deal’s unique non-recourse off-balance-sheet receivables purchase facility is projected to make the transaction net cash positive, reducing Tasmea’s pro forma gearing ratio to about 0.5 times post-completion.
Both companies’ leadership expressed optimism about the partnership. Tasmea’s Managing Director, Stephen Young, highlighted the disciplined growth approach and the complementary customer base, while WorkPac’s Managing Director, Hamish Griffin, emphasized the enhanced labour supply channels and shared value creation for clients and employees alike.
Looking Ahead
As Tasmea prepares to integrate WorkPac’s operations, investors will be watching closely to see how effectively the combined entity leverages its expanded workforce solutions capabilities. The acquisition not only strengthens Tasmea’s service offering but also positions it to better navigate the forecasted trade skills shortages impacting key Australian industries.
Bottom Line?
Tasmea’s acquisition of WorkPac sets the stage for accelerated growth but hinges on seamless integration and delivery of anticipated synergies.
Questions in the middle?
- How will Tasmea manage integration risks between its existing segments and WorkPac’s operations?
- What are the detailed plans to realise the identified revenue and cost synergies post-acquisition?
- How might competitors respond to Tasmea’s expanded workforce solutions platform?
