Leading national mining and civil contractor NRW Holdings (ASX: NWH) has completed the acquisition of Fredon Industries Pty Ltd.
The $122 million completion payment was funded through NRW’s existing finance facilities and a further earn-out payment of up to $60 million in cash is payable after Fredon’s CY25 results, subject to performance hurdles.
NRW managing director Jules Pemberton welcomed the completion of the transaction, along with the 2,500-strong workforce from Fredon who join NRW today.
Fredon will underpin the creation of a fourth business pillar at NRW – EMIT or Electrical, Mechanical (HVAC), Infrastructure and Technology.
“Since the announcement there has been significant positive feedback and interaction with Fredon and their clients and we look forward to supporting Fredon’s growth initiatives, which align with creating long-term shareholder value,” Mr Pemberton said.
“I am excited about the future prospects for the group through Fredon with the significant capabilities it brings in both HVAC (heating, ventilation, air-conditioning) and electrical services across major emerging markets in data centres, together with its long history of high-quality delivery across defence, hospitals, airports and other major industrial and infrastructure sectors.
“With the broader capabilities acquired through Fredon, and the creation of a fourth pillar EMIT, NRW continues with its strategy to grow through expanding the service offering, delivering new capabilities and entering new addressable markets.”
NRW will consolidate the results of Fredon from the date of completion and, accordingly, is providing updated guidance for FY26.
The first three months of FY26 have provided NRW with a solid start to the financial year. The weather in Queensland has been dry and across all sectors of the business the company is seeing an improved level of activity, which brings with it improved opportunities.
While Fredon’s result will only be consolidated from the date of completion, Fredon too has had a solid start to the year and is seeing increasing level of tender activity associated with the growing demand for its HVAC offerings.
NRW’s updated guidance for FY26 is:
- Revenue to be in excess of $4 billion
- Underlying EBITA of between $255 million and $265 million
