Hamilton Locke advised MI Scaffold Pty Ltd (MI Scaffold) on its divestment to Australian publicly listed entity, Acrow Formwork and Construction Services Ltd, (ASX: ACF) (Acrow).
Founded in 2012, MI Scaffold is a leading provider of industrial scaffolding, access, and rigging services throughout North and Central Queensland.
Acrow is a leading provider of smart integrated construction systems across formwork, industrial services and commercial scaffolding in Australia.
Acrow has entered into a share purchase agreement to acquire 100% of MI Scaffold for an enterprise value of $36.4m on a cash-free, debt-free basis. Comprised of $26.4m in upfront consideration and potential deferred consideration of up to $9.9m based on future financial performance. The acquisition and associated transaction costs will be funded through a combination of $15.0m equity raising via an institutional placement and $15.0m Westpac debt facilities.
This transaction is indicative of our commercially focused and integrated Energy, Resources, Construction, and Infrastructure team. Hamilton Locke brings together multi-disciplinary teams and delivers integrated client-centric solutions across the project lifecycle, in project development, construction, operation, financing and delivery, and in joint ventures and mergers and acquisitions transactions.
The Hamilton Locke team comprised of Partners, Matt Baumgurtel and Jo Ruitenberg, Senior Associate Hannah Jones, and Lawyer Zane O’Neill. The Hamilton Locke team thanks our co-advisors at LCC Asia Pacific, led by Nicholas Assef with Ashley Siles and Joe Brereton who provided financial and strategic advice to MI Scaffold.
Tim Goodman from RSM Australia and Katrina Ryan from Next Accounting Pty Ltd provided accounting advice to MI Scaffold.