Well summarised @toby9562. In addition to your analysis, this...

Well summarised @toby9562. In addition to your analysis, this acquisition should continue to deliver increasing returns on investment over many years, as the expertise is applied in other marine situations, in all States, particularly in WA and Victoria. Acrow has an excellent record of doing exactly this - buying a local business cheaply and expanding the services Australia wide.

This is one of the reasons Acrow has been so profitable, reaching ROIC levels well over 20%.

Just to recap from the mid August results where growth is coming from:

FY24:
• record secured hire contract wins of $67.5m (+34% on PCP);
• a current pipeline of $142.3m (+70% on PCP);
• an additional 10-months of EBITDA contributions of approximately $8m, associated with
the premium screens and panels acquisitions in April/May 2023; and
• full year contributions from the FY23 capital investment program.

Longer Term Growth:
• Jumpform - expansion of the business across Acrow’s national footprint;
• Screens – continued market share gains for the Natform screens, and deployment of the
premium screens outside of the Queensland market;
• Industrial Services – expansion into new products and markets around Australia, plus
an active M&A pipeline to enter new territories and markets; and
• New product development – the design and delivery of proprietary new equipment for
the Australian formwork market.

And now we can add this new acquisition to growth for both FY24 and over the longer term.

If Toby is right, we can now add another annual EBITDA run-rate amount of around $6M to the guided EBITDA of $67-$70M (around 40% increase over FY23 using the exit run-rate for this new acquisition).

At a 5x value/EBITDA, Acrow would be worth around 5 x $75M = $375M. It is currently on a market cap of around $232M.

All looks good to me. I can't see the market doing anything other than rewarding Acrow on this acquisition.