SYDNEY, AUSTRALIA: Acrow Formwork and Construction Services Limited has acquired the screen assets from Heinrich Plant Hire, including the intellectual property and existing and secured hire contracts. The purchase price of $11.5 million will be funded by a combination of cash at bank and debt.
Acrow Formwork and Construction Services anticipates that the return on investment in Year 1 will exceed the company’s required hurdle rate for growth capital investment and therefore has the potential to make a material positive contribution to the Company’s FY 24 earnings.
Commenting on the acquisition, Managing Director, Steven Boland said: “We are very pleased to have acquired the screens assets and contracts from Heinrich, one of South-East Queensland’s largest formwork contractors, and a long-term client of Acrow.”
“The assets will complement Acrow’s existing screens business, providing additional flexibility and product versatility to an already strong market position. “
“We also see further market growth opportunities over time, as we look to roll out the Heinrich screens system across our national footprint.”
Secured Hire Contract Wins Update
Secured hire contract wins for the nine months to 31 March 2023 have increased by 34% on the previous corresponding period. This exceeds the 28% growth reported for the six months to 31 December 2022.
The month of March recorded hire contract wins of $6.8m, representing the second largest month in the company’s history and included a third Jumpform contract win and the first in the Western Australian market.
Commenting on the update, Steven Boland said: “Acrow Formwork and Construction Services is experiencing another year of strong growth in FY23 and our continued success in securing new hire revenue contracts, our most important lead indicator, plus the opportunities arising from the national rollout of Jumpform and now the important acquisition of the excellent Heinrich screens assets and associated contracts, bodes well for the prospects of another year of growth in FY24.”
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