NRW Holdings says it has executed a binding agreement to acquire 100% of Fredon Industries Pty Ltd for an enterprise value of up to A$200 million ($131 million) on a debt free cash free basis.
Fredon was established in 1968 and is a leading national provider of Electrical, Mechanical (HVAC), Infrastructure, Technology and Maintenance services (EMIT).
NRW says it has core capabilities with a proven delivery platform, plus the ability to scale to access opportunities driven by the energy transition, as well as onset of electrification, automation and digital innovation.
The acquisition delivers a fourth pillar, “EMIT,” which aligns with NRW’s strategy to grow through expanding the service offering, deliver new capabilities and enter new addressable markets, NRW says.
Fredon currently has limited exposure to the resources sector, with NRW’s strength and reputation in this sector, Australia-wide, providing the group with significant future growth opportunities, NRW says.
Key sectors in which Fredon operates include the provision of specialised services and products to major data centres, health and defence developments placing Fredon in an enviable position to leverage off increasing demand in these sectors given the industry focus on sustainability and energy efficiency, NRW says.
The Fredon executive management team will remain in place under the leadership of CEO Scott Olsen, who joined in 2019 after holding senior leadership roles at Lendlease Engineering and John Holland, where he managed large-scale infrastructure and building operations.
The business employs approximately 2,500 technicians, project managers, engineers and operational staff.
Looking forward, Fredon’s secured order book plus run-rate maintenance/minor works service business provide strong support for earnings, with around A$840 million of revenue and circa-A$40 million of EBIT scheduled for delivery in the 2026 financial year and a further step-up in 2027.
Jules Pemberton (pictured on the left), NRW’s CEO & Managing Director, said: “Fredon represents a strategically and financially compelling acquisition for NRW, with the potential to drive further growth across the business and create long-term shareholder value. Fredon holds strong market positions across its divisions, supported by longstanding Tier 1 client relationships and an experienced management team providing a full spectrum of solutions throughout the entire electrical and HVAC infrastructure lifecycle.
“Fredon is highly complementary to NRW’s existing operations and, with its well-recognised brand and strong long-term client relationships, provides an attractive platform to expand into adjacent disciplines.”
Completion of the acquisition is subject to conditions precedent which are customary for a transaction of this nature including certain third-party contract consents (which may be waived by NRW in its discretion). NRW expects completion to occur on or before September 30, 2025, and will update group guidance post completion.
