Tasmea Limited Expands National Footprint with Flanco Group Acquisition

In a strategic move to bolster its presence in Australia’s civil and mining services sector, Tasmea Limited has announced the acquisition of Flanco Group for an initial consideration of A$27 million. The deal, which could amount to A$50 million based on performance milestones, is set to enhance Tasmea’s capabilities and drive operational synergies across its subsidiaries.

  • Tasmea Limited is acquiring Flanco Group for an upfront A$27 million, with a potential total of A$50 million based on performance.
  • The acquisition is expected to be highly earnings-per-share accretive, with an estimated increase of 12%.
  • Flanco Group specialises in high-demand services, including precast concrete, civil maintenance, and asset remediation.
  • This move strengthens Tasmea’s operations in Western Australia and other mainland states, supporting its long-term infrastructure strategy.
  • The acquisition is expected to generate revenue synergies by integrating Flanco’s expertise with Tasmea’s existing business portfolio.


Tasmea Limited (ASX: TEA) is a diversified Australian company specialising in maintenance, engineering, and specialised trade services. Established in 2012, the company operates across multiple industry sectors, including mining, oil and gas, infrastructure, and defence. Headquartered in Jandakot, Western Australia, Tasmea has built a reputation for providing essential services to blue-chip clients. As of today, the company’s shares are trading at A$2.55, reflecting positive investor sentiment following the acquisition announcement.

Strategic Expansion into the Mining Sector

With the acquisition of Flanco Group, Tasmea is positioning itself as a leading provider of civil and mining services in Australia. Flanco’s expertise in precast concrete, formwork, and asset remediation aligns perfectly with Tasmea’s existing service portfolio, allowing for seamless integration. This expansion is particularly significant in the Kalgoorlie-Boulder Goldfields region, where Flanco has built strong customer relationships over the years. By leveraging these connections, Tasmea aims to deepen its market penetration and enhance project execution efficiency.

Financial and Operational Synergies

One of the primary drivers behind this acquisition is the potential for financial and operational synergies. Flanco Group has demonstrated a strong revenue growth trajectory, with a compound annual growth rate (CAGR) of 23% between FY21 and FY24. Under Tasmea’s ownership, the acquisition is expected to contribute more than A$10.2 million in maintainable EBIT, with a potential overperformance target of A$16.2 million annually for four years.

From an operational standpoint, the integration of Flanco’s workforce, equipment, and project management systems into Tasmea’s existing framework will enhance efficiency. This will allow for better asset utilisation and cost savings, as well as new opportunities for cross-selling Tasmea’s specialist maintenance services to Flanco’s established client base.

Leadership Continuity and Cultural Alignment

A key aspect of the acquisition is the retention of Flanco’s leadership team. Founders Jason Flannery, David Cooper, and Troy Moller will continue in their executive roles, ensuring continuity and stability as the business transitions under Tasmea’s ownership. Their experience and industry expertise will be instrumental in driving the growth of Flanco within the Tasmea Group.

Cultural alignment between the two companies has been highlighted as a major advantage. Both Tasmea and Flanco operate on principles of reliability, safety, and long-term customer relationships. This shared philosophy will facilitate a smoother integration process and foster collaboration across business units.

Funding and Long-Term Growth Strategy

Tasmea plans to fund the acquisition through a combination of a new A$24 million bank facility, the issuance of Tasmea shares, and deferred performance-based payments. The company expects to maintain a net debt-to-EBITDA ratio of approximately 1.0x by the end of 2025, ensuring financial stability.

Beyond the immediate financial benefits, the acquisition aligns with Tasmea’s broader growth strategy. By strengthening its footprint in key mining regions and enhancing its service capabilities, the company is positioning itself for long-term success in Australia’s evolving infrastructure and resources sectors. This move underscores Tasmea’s commitment to expanding through strategic partnerships and targeted acquisitions, reinforcing its leadership in the industry.

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