Tasmea to acquire Flanco Group

PERTH: Tasmea has announced the execution of a Share Purchase Agreement to acquire 100% ownership of Flanco Pty Ltd and Flanco Kalgoorlie Pty Ltd, two subsidiaries of the Flanco Group.

The transaction is set for completion in early May 2025.

Flanco Group is a leading provider of civil services and maintenance solutions to mining and infrastructure sectors.

Their portfolio includes precast concrete, earthwork, formwork, civil maintenance, asset remediation, constructability advice, and project management. While Flanco primarily operates in Western Australia, it has recently extended its presence to other states, including Queensland and New South Wales.

The acquisition strengthens Tasmea’s national footprint and enhances its specialized capabilities. Flanco’s consistent revenue growth, averaging a compound annual growth rate of approximately 23% between FY21 and FY24, has been driven by strategic planning, valued customer partnerships, and its reputation as a reliable service provider.

Flanco’s leadership trio—Jason Flannery, David Cooper, and Troy Moller—will continue in their roles under long-term executive agreements, supporting Tasmea in expanding cross-selling opportunities and sustaining business growth.

The purchase comprises:

• A$21 million in upfront cash;
• A$6 million in Tasmea shares;
• Up to A$23.4 million in deferred payments tied to earnings performance; and
• Additional overperformance incentives.

Tasmea plans to finance the acquisition through a new A$24 million bank facility and future cash flows from Flanco Group.

Stephen Young, Managing Director of Tasmea, emphasized the cultural alignment and synergies between the two companies. “Flanco’s specialized capabilities and reputation for reliability align seamlessly with Tasmea’s strategic goals,” Young said.

Flanco’s leadership expressed excitement about the partnership, citing enhanced opportunities for growth and collaboration under Tasmea’s corporate umbrella.

This acquisition is expected to significantly enhance shareholder value, with Tasmea forecasting a strong financial outlook, including a return to its target leverage ratio by December 2025.