2 major construction players in Auckland & the Pacific, the Russell & Reddy families, have merged their Acrow-related scaffolding businesses.
Each family will hold 40% of the new parent company, Acrow Holdco Ltd, and managing director Mark Irvine will hold 20%.
The Auckland-based Acrow Ltd is New Zealand’s largest scaffolding, formwork, falsework & event infrastructure company, while the Reddy Group’s Clyde Equipment & Acrow Fiji interests have been closely involved in commercial construction through the Pacific for 70 years.
The companies in the merger are Acrow Ltd & SkyHigh Scaffolding Ltd of Auckland, and Clyde Equipment Ltd & Acrow Fiji of Fiji.
Grant Samuel & Oculus Advisors brokered the deal.
Strategic step for both businesses
Mr Irvine said this week the merger represented “a strategic step forward for the businesses, both in terms of asset base optimisation opportunities & broadening of their service offering, including into other areas of access & event infrastructure as well as diversification of geographic regions.
“The combination of these businesses creates a leading independent service provider to the construction sector in New Zealand & the Pacific which will benefit customers & teams across the business.
“It is great to have both the Russell & Reddy families coming together with similar family values & a strong capital base to take the joint group forward.
“It’s positive to see Acrow in Fiji return to the fold. This deal also provides the opportunity for us to consolidate our holdings in Acrow NZ & SkyHigh Scaffolding, both of which will become part of the new group.”
Acrow, originally (& still) Australian, spread to New Zealand & the Pacific decades ago, but now concentrates on its home territory.
Reddy “brings additional skills”
Mr Irvine said the group was delighted to have Reddy Group investing: “In addition to its Fiji equipment supply & scaffolding assets, Reddy Group brings additional skills & expertise as a leading New Zealand family office, with a professional approach & international perspective.
“Reddy Group brings fresh rigour to our strategic discussions, as well as a strong network of relationships & opportunities across a number of sectors and throughout the Pacific Islands.”
Mr Irvine said that, from an operational perspective, it was business as usual for now, but with a strengthened outlook & exciting opportunities ahead: “Our focus is on growth & the new opportunities arising from this merger. We will look to expand services & drive operational improvement across the enlarged group.”
The New Zealand Acrow company headed by Brett Russell & Mark Irvine is based in Mt Wellington and employs over 400 people through a nationwide branch network, servicing the industrial, commercial, civil & residential sectors with engineering design, equipment & labour.
SkyHigh Scaffolding is a Canterbury- & Auckland-based provider of scaffolding services to the residential, commercial & industrial sectors.
The Russell family’s base business is Dominion Constructors Ltd.
Reddy family has extensive interests
The Reddy Group acquired Clyde Engineering Co Ltd, a New Zealand company which had expanded its operations in Fiji to market & service heavy construction & industrial equipment in the South Pacific, in 1970.
In 2001, Clyde acquired certain Fiji-based operations of the scaffolding hire business of Boral Acrow of Australia. Today, Clyde is a leading South Pacific distributor & supplier of electrical power generating equipment, air compressors/pneumatics & water pumps as well as light, medium & heavy equipment for the construction, industrial, commercial & hospitality sectors. It employs over 70 people in Suva, Lautoka & Nadi.
Rohit Reddy is managing director and his sister Kamini is finance & strategy director. His other sister, Kalpana, is director of sales & marketing.
The group describes itself as “a private family business with investments in hotels, real estate, construction, private equity, financial services, engineering equipment & education”.
Those extensive interests include 9 hotels & other accommodation in Fiji, Samoa, Tonga and, in the Bay of Islands, Russell.
Attribution: Company release.