SHAPE Australia Corporation (SHA) – Australian Professional Shopfitters

SHAPE Australia Corporation engages in the construction, fit-out, and refurbishment of commercial properties in Australia. The company was founded in 1989 and is headquartered in Sydney, Australia.

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SHAPE has announced the acquisition of Australian Professional Shopfitters (APS) for an upfront consideration of $20.4 million, comprising $17.4 million cash and $3.0 million in Shape scrip, with a potential earnout of $9.0 million over the next two years.The transaction is expected to settle on 1 July-2027, and the acquisition is forecast to be 5–7% EPS accretive in FY27, furthering SHAPE’s exposure to repeatable and programmed work characterised by high volume and short duration turnarounds (3-4 weeks). SHAPE has 28 years’ experience and long-standing relationships with tier-one retailers, we view the APS acquisition positively and maintain our Buy recommendation, while raising our target price to $8.85 from $8.50

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As well as deepening the company’s exposure to high volume repeat work in the retail space, the acquisition is characterised by its vertically integrated business model with expertise in design, manufacturing, and delivery. Through its 5,000 sqm manufacturing facility, APS provides SHAPE with joinery capabilities which, in time, it can leverage into other parts of its operations, namely projects in the Arden business which has parallels with SHAPE with repeatable, short turnaround retail projects. APS operates on an EBITDA margin of ~16% and as such, represents yet another acquisition that bolsters SHAPE’s margin story.

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