SYDNEY, AUSTRALIA: Tasmea Limited has executed an Asset Sale Agreement with Dingo Corporation Pty Ltd to purchase the business assets of Dingo De Construction for $6.5 million, with completion expected to occur on or about 1 June 2024.
Tasmea will purchase the Dingo business as a going concern and continue operations in a new subsidiary entity, trading as Dingo Concrete Services Pty Ltd.
Based in Tom Price WA, Dingo’s core business is the batching, mixing and delivery of concrete under an agency agreement with Holcim (Australia) Pty Ltd.
In parallel with the Asset Sale Agreement, Tasmea has negotiated a new agency agreement with Holcim to allow Dingo to continue as Holcim’s agent in Tom Price, execution of which is a condition precedent to completion. In addition to the batching and delivery of concrete, Dingo also provides materials cartage, civil contracting and machine hire services across the Pilbara.
The Dingo acquisition is expected to be accretive, and the business is forecast to provide maintainable EBIT of circa $2 million under Tasmea ownership and be earnings accretive.
The acquisition will be funded from a combination of cash and borrowings.
The acquisition of Dingo further embeds Tasmea within the Pilbara and specifically in Tom Price, aligning with Tasmea’s core strategies of focusing on remote area work and servicing blue chip asset owners.
Tasmea views the acquisition of Dingo as an excellent candidate for our proven methodology to scale up businesses following acquisition. As a consequence of strengthening the workforce and offering exemplary service, Tasmea is confident in Dingo’s ability to capitalise on opportunities for growth within the dynamic Pilbara region.
Commenting on the acquisition of Dingo, Tasmea Group Managing Director Stephen Young said, “We are excited to acquire Dingo, as it will enable the Tasmea Group to better support our customers in the Pilbara region”.
Tasmea remains on track to deliver its FY24 prospectus earnings forecast.
Tasmea Limited is a skilled services company with fifteen integrated subsidiaries. They provide essential maintenance, engineering and. specialized project services and solutions across the. Electrical, Mechanical, Civil and Water and Fluid.
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