Tasmea Limited has announced the acquisition of WorkPac Group for up to A$60.7 million, significantly enhancing its workforce solutions capabilities and positioning the company for growth amid Australia's skilled labour shortages.
- Tasmea to acquire 100% of WorkPac for up to A$60.7 million
- Acquisition expected to be earnings accretive by ~10% in FY26 pre-synergies
- WorkPac’s skilled labour engine supports Tasmea’s specialist trade services
- Deal funded by cash reserves and Tasmea shares, with earn-out payments tied to performance
- Strategic expansion into resources, infrastructure, defence, and aged care sectors
Strategic Acquisition to Address Skilled Labour Shortages
Tasmea Limited has announced a major strategic acquisition of WorkPac Group Pty Ltd, a leading Australian workforce solutions provider, for consideration of up to A$60.7 million. This move is designed to fuel Tasmea’s organic growth strategy by integrating WorkPac’s advanced recruitment capabilities, thereby securing skilled labour certainty for Tasmea’s specialist trade services subsidiaries.
The acquisition package includes A$20.2 million in upfront cash, A$2.5 million subject to purchase price adjustments, and A$27.5 million in Tasmea shares, alongside two earn-out payments contingent on WorkPac’s earnings performance over the next two years. Settlement is targeted for early December 2025.
Enhancing Workforce Solutions and Operational Synergies
WorkPac’s extensive database of over 1.5 million registered skilled workers and its ability to place more than 15,000 workers annually will serve as a vital labour engine for Tasmea. This integration will support rapid mobilisation and deployment of specialist personnel across Tasmea’s four operating segments – Electrical, Mechanical, Civil, and Water & Fluid.
Operational synergies are expected through the adoption of WorkPac’s state-of-the-art corporate systems, including ERP, payroll, and workforce scheduling. Cost efficiencies will be realised by consolidating recruitment, payroll, and procurement functions, while revenue synergies will emerge from cross-selling opportunities at more than 50 new sites where WorkPac has a presence.
Financial Impact and Market Positioning
The acquisition is projected to be earnings accretive by approximately 10% on a pro-forma basis for FY26, excluding synergies, with strong EBIT margins exceeding 18%. Tasmea expects the transaction to be net cash positive, supported by a non-recourse off-balance-sheet receivables purchase facility and funded through recent capital raises and share issuance.
Strategically, the deal positions Tasmea to capitalise on robust investment pipelines in Australia’s resources, infrastructure, defence, aged care, and health sectors. WorkPac’s footprint expands Tasmea’s reach into previously under-served regions, particularly Queensland and New South Wales, aligning with significant government infrastructure programs and resource sector growth.
Addressing Persistent Labour Market Challenges
Australia faces ongoing shortages in skilled labour across key occupations, including technicians, trades, and healthcare workers. WorkPac’s recruitment engine, combined with Tasmea’s specialist services, offers a competitive edge by enabling faster and larger-scale workforce mobilisation. This capability is critical for executing time-sensitive projects such as large-scale shutdowns and complex infrastructure developments.
Moreover, WorkPac’s registered training organisation, Gold Training, enhances Tasmea’s ability to attract, train, and retain skilled workers, from apprentices to supervisors, further strengthening the long-term sustainability of the workforce supply chain.
Bottom Line?
Tasmea’s acquisition of WorkPac marks a pivotal step in securing skilled labour capacity, setting the stage for accelerated growth amid Australia’s evolving infrastructure and resource demands.
Questions in the middle?
- How effectively will Tasmea integrate WorkPac’s systems and culture to realise projected synergies?
- What impact will the acquisition have on Tasmea’s competitive positioning in under-served regions like Queensland and NSW?
- How will fluctuations in Australia’s skilled labour market affect the earn-out payments tied to WorkPac’s future earnings?