Acrow Formwork and Construction Services Limited (ASX: ACF) is set to acquire MI Scaffold Pty Ltd for AU$36.4 million, aiming to bolster its industrial services capabilities. MI Scaffold is known for providing scaffolding, rigging, and access solutions in North and Central Queensland. The upfront consideration of this acquisition is about 4.0x EV/EBITDA and is expected to be high-single digit EPS accretive. The acquisition is scheduled to complete in mid-November, subject to customary conditions, financing, and working capital adjustments.
This move aligns with Acrow's strategy of enhancing its recurring revenue business and diversifying its service offerings, extending its reach into the Queensland market and providing access to blue-chip clients in various sectors. The acquisition will be funded through a combination of equity placement and expanded Westpac debt facilities. This strategic acquisition is part of Acrow's plan to expand its presence and broaden its service offerings in the industrial services sector. The company expects the acquisition to enhance its competitive positioning and revenue potential.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
