SYDNEY: Australian engineering and mining services firm NRW Holdings Ltd (ASX:NWH) said on Tuesday it will acquire Fredon Industries Pty Ltd for up to A$200 million, adding a fourth strategic pillar to its operations and expanding its footprint in electrical, mechanical, infrastructure and technology services.
The acquisition, structured as a debt-free, cash-free transaction, will be funded through NRW’s existing corporate debt facilities. The deal includes an initial payment of A$122 million, with up to A$60 million in earn-out payments contingent on Fredon’s calendar year 2025 performance, and a deferred payment of up to A$18 million due two years post-completion.
Fredon, founded in 1968 and headquartered in Sydney, employs around 2,500 staff and posted unaudited FY25 revenue of A$840 million and EBIT of A$38.6 million. NRW said the acquisition implies a 5.2x EV/EBIT multiple and will be immediately accretive to earnings per share.
NRW CEO Jules Pemberton said the deal aligns with the company’s strategy to diversify its service offerings and enter new addressable markets, particularly in energy transition, automation and digital infrastructure. Fredon’s management team will remain in place post-acquisition.
Completion is expected by Sept. 30, subject to customary conditions including third-party consents.
NRW’s pro forma FY26 revenue is projected to reach A$4.2 billion, supported by a combined workforce of 11,500 and expanded operations across Australia, New Zealand, Canada and the United States.