Acrow (ASX:ACF) has entered separate binding arrangements to acquire Brand Australia and Above Scaffolding for a total upfront consideration of AU$23 million, plus a potential earn-out of up to $6 million for Above Scaffolding, according to a Wednesday Australian bourse filing.

Before synergies, the acquisitions are expected to generate revenue of about AU$40 million in fiscal year 2026 and earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding the impact of accounting standard AASB 16, of at least AU$6 million, respectively, the filing said.

In the case of these specific transactions, the acquisitions in aggregate imply an enterprise value to EBITDA ratio of less than four times.

The acquisitions will be funded through the company's existing Wespact debt facility and are expected to be immediately earnings accretive, according to the filing.

The company expects both deals to be complete and economically effective from May 1.

The company has cut its 2025 earnings per share guidance from a range of between AU$0.115 to AU$0.12 to AU$0.105 to AU$0.115 due to delays in starting contracts.

The company also reduced its full fiscal year sales guidance to between AU$260 million and AU$270 million from the previous range of AU$265 million to AU$280 million.

Net profit after tax guidance is now anticipated to reach AU$32.5 million from AU$35 million from AU$35.5 million to AU$37.5 million.