Tasmea (ASX:TEA) acquires Dingo De Construction's concrete business for $6.5M

Tasmea has acquired Dingo De Construction's concrete batching, material supply, and transport business for $6.5 million.

The acquisition complements Tasmea's existing operations in the Pilbara region of Western Australia and aligns with the company's strategy to support fixed-plant assets in remote areas.

The transaction, set to complete around June 1, includes all business assets and operations of Dingo De Construction.
Tasmea will continue the operations under a new subsidiary entity, Dingo Concrete Services.

The acquisition is expected to be earnings accretive, with the Dingo business forecasted to maintain an EBIT of approximately $2 million under Tasmea's ownership.

Funding for the acquisition will come from a mix of cash and borrowings. The move is expected to bolster Tasmea's capacity to deliver its FY24 prospectus earnings forecast.