Tasmea buys high voltage power line company

Tasmea has acquired communication and energy infrastructure company Future Engineering Group for $84.5 million.

Based in Western Australia, Future Engineering Group (FEG) specialises in the design, fabrication, maintenance and supply of high voltage powerlines, substations, switchgear and other electrical services, while FEG subsidiary Rollwell fabricates, rolls, and presses for engineering projects.

Tasmea has several subsidiaries this acquisition aligns with, including its powerline construction and high voltage equipment engineering services.

Tasmea managing director Stephen Young said buying FEG provides now Tasmea with end-to-end electrical capabilities, providing full solutions from start to finish, which he said is rare in the industry.

“This acquisition is not only a strategic fit but also a significant leap forward for our company,” Young said.

“Rapid electrification trends present a compelling opportunity for Tasmea, and Future Engineering Group’s expertise positions us perfectly to capitalise on these attractive tailwinds in the Australian marketplace.

“This acquisition reinforces our commitment to supporting Australia’s energy transition.”

Tasmea said this will provide the company a strong foothold in the supply of critical renewable energy infrastructure.

The acquisition will be carried out using existing cash reserves, an issue of Tasmea scrip, as well as a new $50m debt acquisition facility.