Acrow Raises $70 Million to Acquire Ausgroup and Preston SuperDeck

Strategic Acquisitions to Broaden Acrow’s Market Reach

Acrow Limited (ASX:ACF) is accelerating its growth trajectory with the announced acquisition of Ausgroup Industrial Services (AGIS) and the Preston SuperDeck® business for a combined $54.5 million. These purchases are designed to complement Acrow’s existing Industrial Access and Construction Services divisions, extending its national footprint and product offering.

Ausgroup, a Queensland-based industrial services provider with blue-chip clients such as BHP, Anglo American, and Glencore, brings a strong presence in mining, ports, and energy sectors. Meanwhile, Preston SuperDeck® dominates the Australian market for retractable loading platforms, boasting over 70% market share and a fleet of approximately 900 decks.

Capital Raising to Fund Acquisitions and Strengthen Balance Sheet

To finance these acquisitions, Acrow is launching a fully underwritten $70 million two-tranche institutional placement priced at $0.85 per share, a 6.6% discount to the last close, alongside a $6.75 million scrip consideration to AGIS vendors and a $10 million share purchase plan (SPP) for eligible shareholders.

Of the equity raised, $19.5 million will be directed towards debt reduction, improving Acrow’s net debt from $165 million to $146 million and reducing the net debt/EBITDA ratio from 2.4x to 1.8x as of 30 June 2026. Pro-forma for FY27, this ratio is expected to tighten further to 1.5x, aligning with the company’s target range of 1.0 to 1.5x.

Upgraded FY27 Guidance Reflects Acquisition Contributions

Reflecting the acquisitions and a stronger underlying business, Acrow has upgraded its FY27 guidance. Revenue is now forecast between $405 million and $425 million, up 21% on previous guidance, while EBITDA is expected to increase by 15% to between $102 million and $112 million. These figures assume consolidation of Preston SuperDeck® from 1 July 2026 and AGIS from 1 August 2026.

The acquisitions are forecast to be mid-single-digit EPS accretive on a pro-forma basis, enhancing shareholder value. Acrow’s dividend policy will target a payout ratio of 25% to 40% of underlying NPAT going forward.

Regulatory and Integration Risks Remain

The AGIS acquisition is subject to approval from the Australian Competition and Consumer Commission (ACCC), with timing and outcome uncertain. Acrow highlighted the complementary nature of the businesses and limited customer overlap as factors mitigating competition concerns, but no assurance has been provided on the approval timeline.

Integration risks also loom, particularly with AGIS’s operations and the Preston SuperDeck® assets requiring alignment with Acrow’s existing platforms. The company has a track record of successfully integrating acquisitions, but delays or cost overruns could impact financial outcomes.

Positioning for Growth Ahead of SE Queensland Construction Boom

Acrow’s CEO Steven Boland emphasised the strategic importance of these acquisitions in positioning the company to capitalise on an anticipated surge in construction activity, notably linked to the upcoming 2032 Brisbane Olympics and broader civil infrastructure cycles. The expanded product suite and enhanced geographic coverage aim to strengthen Acrow’s “one-stop-shop” offering, particularly in high-rise commercial and residential projects.

With a pro-forma FY27 EBITDA expected to comfortably exceed $100 million, Acrow is entering a phase of accelerated growth supported by both organic initiatives and strategic acquisitions. The company’s focus on maintaining a strong balance sheet and disciplined capital management underpins its ability to navigate market volatility and pursue further opportunities.