Acrow acquires Heinrich’s formwork system in $12m deal

SYDNEY, AUSTRALIA: Acrow, a leading provider of construction solutions in the industry, has announced the acquisition of Heinrich’s Ishebeck Formwork Panel System, a renowned formwork system used for in situ concrete projects. The asset-only purchase, valued at up to $12m, is part of Acrow’s strategic investments that drive growth and enhance its market position.

The Ishebeck Formwork Panel System is internationally recognised as a leading formwork system in the industry. It consists of just a few components that ensure optimum support for precast concrete floors. These assets will initially be deployed in Acrow’s Queensland business, where opportunities have been identified, in addition to the Heinrich’s contracts.

The transaction comprises an initial payment of $6m, with up to an additional $6m to be paid over two years contingent on the fulfillment of pre-conditions, relating to the delivery of contractual obligations (including the achievement of minimum revenue targets). There are no material pre-conditions for completion and the acquisition will be effective from June 1, and will be funded through a combination of cash and debt.

Whilst the acquisition of the Ishebeck Formwork Panel System will not be material for FY23 it is expected to make a significant contribution in FY24 with an expected first-year return on investment of around 45%-55%.

Steven Boland, CEO of Acrow, commented on the acquisition, stating: “It is very exciting to be adding another leading formwork system to the Acrow portfolio of assets. The company’s commitment to delivering exceptional value-added solutions to its stakeholders should now be evident through this acquisition and the recent acquisition of Heinrich’s Screens assets, which in total are anticipated to contribute approximately $9.5m to the company’s EBITDA in FY24, for a combined outlay of up to $23.5m.”

“Despite recent media reports suggesting the likely pause of some earmarked transport infrastructure projects, the company’s 36% year on year growth in secured hire contracts (April YTD), and a healthy pipeline provides Acrow with the confidence to expect the continued strength of the east coast civil infrastructure market. Moreover, the company’s experience, reputation, and ability to secure projects positions it well for long-term sustained growth.”

“FY24 will be another year of tremendous growth for Acrow. This current acquisition, combined with other recent acquisitions and the strength of our core markets reinforces our position as a leader in the industry. We look forward to the opportunities that FY24 will bring.”

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