Acrow Limited (ASX: ACF), a leading provider of smart integrated construction systems across formwork, industrial access, and commercial scaffolding in Australia, has announced a significant capital raising and strategic acquisition initiative. The company, which boasts over 80 years of experience in engineered industrial and construction services, launched a fully underwritten $70 million two-tranche institutional placement. This substantial capital injection is primarily aimed at funding the strategic acquisition of two complementary businesses and strengthening Acrow’s balance sheet, alongside a share purchase plan (SPP) targeting up to $10 million.
The acquisitions involve Ausgroup Industrial Services (AGIS) and the Preston SuperDeck® business, for a combined consideration of $54.5 million, with an additional $6.75 million in scrip consideration. AGIS, a Queensland-based industrial services provider, will bolster Acrow’s industrial access capabilities and offer new growth opportunities in the onsite paint and blast market. The acquisition of Preston SuperDeck®, an Australian market leader in retractable loading platforms, will broaden Acrow’s product offering for high-rise commercial and residential construction projects. CEO Steven Boland commented that these strategic additions would strengthen Acrow’s capabilities and position the company as a “one-stop product provider.”
Beyond the acquisitions, the placement will allocate $19.5 million towards debt reduction, aiming to lower the pro-forma 30 June 2027 net debt/EBITDA ratio to 1.5 times. These transactions are expected to be mid-single-digit EPS accretive on an underlying, pro-forma basis. Reflecting the revised budget and acquisition contributions, Acrow has upgraded its FY27 revenue guidance by 21% and EBITDA guidance by 15%, positioning the business to capitalise on an anticipated uplift in national construction activity, particularly in Southeast Queensland.
The new shares under the placement will be issued at an offer price of $0.85 per share, representing a 6.6% discount to the last close of $0.91 on June 16, 2026. The Tranche One Placement is expected to settle on June 25, 2026, while the Tranche Two Placement is subject to shareholder approval at an Extraordinary General Meeting on July 28, 2026.
