ASX-listed Tasmea has agreed to acquire the nation's largest privately owned labour hire business, WorkPac Group, in a deal worth as much as $60.7 million.
ASX-listed Tasmea has agreed to acquire the nation's largest privately owned labour hire business, Perth-founded WorkPac Group, in a deal worth as much as $60.7 million.
Tasmea emerged from trading halt late on Wednesday with news of the acqusition, which has grown to be a major force in workforce services nationally.
Around $50.2 million of the consideration package will be paid upfront – with $22.7 million of this in cash.
The remaining $27.5 million will be scrip-based, with Tasmea to issue around 5 million new shares at $5.50 apiece.
The deal is expected to be finalised by December 1 and cash components will be funded through the company’s existing reserves.
Tasmea said it anticipated that WorkPac would add around $18 million in EBIT annually under its facilitation.
Mr Young said the acquisition was a great opportunity for the mining services and contracting firm, along with providing ‘skilled labour certainty’ to its clients.
“This transaction reflects our disciplined approach to growth and our commitment to building a diversified, scalable platform across Australia,” he said.
“WorkPac has an excellent reputation and a strong customer base that complements our existing operations.
“Furthermore, we are excited about WorkPac’s ability to recruit specialist trade skilled workers for our specialist trade services subsidiaries and creating certainty for our customers in our ability to assist them with the forecast trade skills shortages in the industries in which we operate.
“We look forward to welcoming the WorkPac team to the Tasmea family.”
Tasmea offers civil, mechanical, electrical and drainage engineering services to industrial sectors, and said the advanced recruitment capability added by WorkPac would boost its ability to fulfil customer labour needs.
The labour hire model was at the heart of public debate around the Same Job, Same Pay workplace relations provisions introduced into law earlier this year.
Phil Smart founded WorkPac in 1997. Although now based in Queensland, Mr Smart remains the company's biggest shareholder.
WorkPac was advised by Page Advisory.
