SYDNEY, AUSTRALIA: Acrow Limited (ASX: ACF), a leading provider of scaffolding and formwork solutions, has announced the successful acquisition of Benchmark Scaffolding, a North Queensland-based company specialising in industrial, mining, and infrastructure projects.
The acquisition, effective 1 March 2024, is valued at $9 million, comprising of cash, equity, and deferred payments. There is also potential for additional earn-outs based on the future performance of Benchmark Scaffolding, which generates annualised revenue of approximately $9 million and EBITDA of $2.4 million.
The deal is in line with Acrow’s strategy of expanding its presence and capabilities in the industrial services sector, following the recent acquisition of MI Scaffold. Both MI Scaffold and Benchmark Scaffolding use Layher Scaffolding equipment, which is compatible with Acrow’s existing products.
Acrow CEO, Steven Boland, said he was very pleased to have completed the acquisition of Benchmark Scaffolding, which has a strong reputation and customer base in the region. He added that the acquisition further enhances Acrow’s position not just in the Central/North Queensland region, but nationally.
As a result of the acquisition, Acrow has upgraded its FY24 EBITDA guidance by $1 million to $73 million – $76 million.