NRW Holdings Limited (ASX:NWH) has announced a binding agreement to acquire 100% of Fredon Industries Pty Ltd for an enterprise value of up to $200 million. NRW is a leading provider of diversified contract services to the resources and infrastructure sectors in Australia. The acquisition, funded from NRW’s existing corporate debt facilities, is expected to close on or before 30 September 2025, subject to customary conditions.
Fredon, established in 1968, is a national provider of Electrical, Mechanical (HVAC), Infrastructure, Technology and Maintenance services (EMIT). The acquisition aligns with NRW’s strategy to grow by expanding its service offerings and entering new markets. Fredon’s executive management and its approximately 2,500 employees will remain with the business. According to the announcement, Fredon has limited exposure to the resources sector, presenting an opportunity for NRW to leverage its reputation and strength in this sector to drive future growth.
The acquisition consideration includes an initial cash payment of $122 million, an earn-out of up to $60 million payable after CY25 results based on performance hurdles, and deferred cash consideration of up to $18 million payable two years post-completion. Fredon achieved FY25 revenue of $840 million and normalised EBIT of $38.6 million. NRW anticipates that the acquisition will be immediately EPS accretive.
Jules Pemberton, NRW’s CEO & Managing Director, stated that the acquisition is strategically and financially compelling, offering the potential to drive further growth and create long-term shareholder value. Pemberton highlighted the strong cultural alignment between the two businesses, noting that the combined workforce will total around 11,500 people across Australia, New Zealand, Canada, and the United States.
