NRW Holdings expands service offering with Fredon Industries acquisition

NRW Holdings Limited (ASX:NWH) has executed a binding agreement to acquire 100% of Fredon Industries Pty Ltd for an enterprise value of up to $200m, effective July 1, 2025. This acquisition introduces a fourth "EMIT" pillar (Electrical, Mechanical (HVAC), Infrastructure, Technology, and Maintenance services) to NRW's existing Civil, Mining, and MET divisions, aligning with the company's growth strategy. The acquisition will be funded from existing corporate debt facilities and includes an initial cash payment of $122m on completion, an earn-out of $45m–$60m after CY25 results, and deferred cash of up to $18m two years from completion.

Fredon, established in 1968, generated FY25 revenue of $840m and normalised EBIT of $38.6m, with an implied acquisition multiple of 5.2x EV/EBIT. The acquisition is expected to provide immediate EPS accretion for NRW and offer clear visibility on FY26F earnings, with an expected revenue of ~$840m and EBIT of ~$40m. Completion is anticipated on or before September 30, 2025, after which NRW Group guidance will be updated.

In related news, Mitsubishi UFJ Financial Group, Inc. reported changes in its relevant interest in NRW Holdings Limited between August 21 and August 28, 2025, involving both purchases and sales of fully paid ordinary shares by entities controlled by Morgan Stanley and First Sentier Group Limited. This highlights ongoing market activity around NRW Holdings during the period of the acquisition announcement.