Acrow raises $70M for dual acquisitions and balance sheet boost

Acrow (ASX: ACF) has unveiled a fully underwritten $70 million capital raising to fund the acquisition of two complementary businesses, expanding its capabilities across key construction markets and strengthening its balance sheet ahead of a forecast uplift in activity.

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The company will acquire Queensland-based Ausgroup Industrial Services and Preston SuperDeck for a combined consideration of $54.5 million, with the remaining funds earmarked for debt reduction.

Management says the acquisitions will broaden Acrow’s reach across its Industrial Access and Construction Services divisions while delivering earnings growth and creating new cross-selling opportunities.

AGIS provides industrial access, paint and blast services to major mining, ports, and energy customers, including BHP, Glencore, Anglo, and Peabody. The business is expected to generate around $40M in revenue and $6.5M EBITDA in FY26.

Preston SuperDeck is Australia’s leading supplier of retractable loading platforms, holding an estimated market share above 70%. The business is forecast to generate approximately $11M in revenue and $6.3M EBITDA in FY26.

The company believes AGIS will strengthen its growing industrial access operations, while Preston SuperDeck expands Acrow’s product suite and reinforces its position as a one-stop provider to the construction sector.

To fund the transactions, Acrow will issue approximately 82.4 million new shares through a two-tranche placement at $0.85 per share, raising $70M.

Importantly, Acrow has also upgraded its FY27 outlook. Revenue guidance has increased by 21% to $405M–$425M, while EBITDA guidance has risen 15% to $102M–$112M.

The additional capital will also reduce net debt from an estimated $165M–$145.5M, lowering the forecast FY27 net debt-to-EBITDA ratio to 1.5 times.

Management said the stronger balance sheet would position the company to capitalise on expected growth from major infrastructure projects and Olympic-related construction activity in Queensland over coming years.

Completion of the Preston SuperDeck acquisition is expected on July 1, while the AGIS transaction remains subject to ACCC approval.

ACF last traded at $0.91/sh.

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