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Sydney-based scaffolding and formwork group Acrow Limited (ASX: ACF) has launched a $70 million fully underwritten institutional placement to fund two acquisitions worth a combined $54.5 million that will boost its capabilities across its industrial and construction cervices divisions.
The two-tranche placement, priced at 85c per share, will bankroll the acquisition of Ausgroup Industrial Services (AGIS) for $27 million enterprise value plus $2.5 million in capital expenditure, and the Preston SuperDeck business for $25 million in upfront cash.
The remaining $19.5 million in proceeds will be directed to debt reduction.
Acrow has also announced a share purchase plan of up to $10 million to give retail shareholders the opportunity to participate on the same terms.
The AGIS deal includes $6.75 million in Acrow scrip and is subject to approval from the Australian Competition and Consumer Commission. If ACCC clearance is not obtained, excess funds will be redirected to further debt reduction.
CEO Steven Boland says the acquisitions mark the beginning of "a golden period of growth" for Acrow, underpinned by the 2032 Brisbane Olympics construction pipeline and the group's accelerating diversification into industrial access services.
"In relation to the AGIS acquisition, the business will strengthen Acrow’s growing industrial access capabilities, while also providing additional growth opportunities through AGIS’s expertise in the onsite Paint and Blast market segment," he says.
"The acquisition of the Preston SuperDeck business is a significant step in broadening the company’s product offering on high-rise commercial and residential construction projects.
"On nearly every project that Preston SuperDeck is required, there is also an opportunity to provide both screens and jumpforms, positioning Acrow uniquely as a one-stop product provider."
Boland says the extra capital being raised will position the business to capitalise on the "anticipated, unprecedented uplift in construction activity across the country, particularly in the key South-East Queensland market".
"Importantly, these acquisitions mark another significant milestone for Acrow, with FY27 EBITDA now budgeted to comfortably exceed $100 million," he says
"When you consider the substantial progress the business has made over the past two years in growing and diversifying its revenue streams, particularly in the industrial access segment, alongside the buoyant construction outlook, especially in South-East Queensland in the lead-up to the 2032 Brisbane Olympics, and the additional growth opportunities arising from these two highly complementary acquisitions, it is clear we are entering a golden period of growth.“
Both acquisitions are expected to be mid-single-digit earnings per share accretive, with pro-forma net debt to EBITDA reducing to 1.5x on completion.
The deals are expected to add about $50 million in revenue and $14 million in EBITDA in FY27, driving upgraded group guidance to $405 million to $425 million in revenue, up 21 per cent, and $102 million to $112 million in EBITDA, up 15 per cent on prior forecasts.
Acrow has also revised its FY26 revenue guidance upward to $330 million to $335 million, from the $315 million to $325 million range flagged at its half-year results in February.
The industrial access division has been the group's standout performer, with revenue already exceeding $200 million in FY26, up about 50 per cent on FY25.
Acrow says $180 million of its FY27 industrial access revenue is already secured.
AGIS, which is estimated to generate about $40 million in revenue and $6.5 million in EBITDA in FY26, provides industrial services including scaffolding, insulation and surface protection across the resources and energy sectors.
The acquisition deepens Acrow's exposure to recurring maintenance and shutdown work in the industrial market.
Preston SuperDeck is a proprietary aluminium formwork system used in commercial and residential construction, adding a differentiated product line to Acrow's existing formwork operations.
The news comes after Acrow posted record first-half FY26 revenue of $155.9 million, up 23 per cent, though underlying net profit after tax fell 22 per cent to $12.9 million amid softer formwork conditions in Queensland.
The acquisitions continue a pattern of bolt-on deal-making that has driven Acrow's transformation from a Queensland-focused scaffolding business into a national formwork and industrial access group.
The company has consistently used acquisitions to enter new markets and build recurring revenue streams.
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