Acrow Limited (ASX: ACF) has announced a significant capital raising initiative, launching a fully underwritten two-tranche institutional placement aiming to secure $70 million. The funds are earmarked for the strategic acquisition of two complementary businesses, Ausgroup Industrial Services (AGIS) and the Preston SuperDeck® business, as well as to fortify the company’s balance sheet through debt reduction. Acrow Limited is a prominent provider of smart integrated construction systems in Australia, specialising in formwork, industrial access, commercial scaffolding, falsework, shoring, screen solutions, jacking systems, and loading platforms. This move is set to expand Acrow’s capabilities across its Industrial Access and Construction Services divisions.
The acquisitions represent a combined consideration of $54.5 million, supplemented by $6.75 million in scrip. AGIS, a Queensland-based integrated industrial services provider, supports clients across the mining, ports, energy, agriculture, and heavy industrial sectors, strengthening Acrow’s industrial access offerings and providing new opportunities in onsite paint and blast services. The Preston SuperDeck® business, an Australian market leader in retractable loading platforms with over 30 years of experience, will broaden Acrow’s product portfolio for high-rise commercial and residential construction projects, reinforcing its position as a “one-stop product provider.”
Financially, these transactions are projected to be mid-single-digit EPS accretive on an underlying, pro-forma basis. A portion of the funds raised, specifically $19.5 million, will be directed towards debt reduction. This initiative is expected to lower the pro-forma 30 June 2027 net debt/EBITDA ratio to a targeted 1.5 times. Additionally, Acrow will undertake a Share Purchase Plan (SPP) targeting up to $10 million, with proceeds also allocated to debt reduction.
The company has consequently upgraded its FY27 revenue guidance by 21% and EBITDA guidance by 15%, reflecting the revised budget and the contributions from the acquired entities. Acrow CEO Steven Boland highlighted the strategic importance of these acquisitions, stating they mark another significant milestone for the company, with FY27 EBITDA now budgeted to comfortably exceed $100 million. He emphasised the opportunities arising from these highly complementary businesses, along with a buoyant construction outlook, particularly in Southeast Queensland leading up to the 2032 Brisbane Olympics, positioning Acrow for a “golden period of growth.”
