• Fredon is a leading national provider of Electrical, Mechanical (HVAC), Infrastructure, Technology and Maintenance services
• Acquisition delivers a 4th pillar 'EMIT' and aligns with NRW's strategy to grow through expanding the service offering
• Fredon has a diversified portfolio of projects across a Tier-1 client base and a capital light, cash generative model

NRW Holdings Limited (ASX:NWH) is pleased to announce that it has executed a binding agreement to acquire 100% of Fredon Industries Pty Ltd (Fredon) for an enterprise value of up to $200M, on a debt free cash free basis. Fredon, established in 1968, is a leading national provider of multi-service Electrical, Mechanical (HVAC), Infrastructure, Technology and Maintenance services with a long track record of strong revenue growth and cashflow generation, supported by a capital light operating model. The acquisition delivers a 4th pillar 'EMIT' and aligns with NRW's strategy to grow through expanding the service offering, deliver new capabilities and enter new addressable markets. Fredon has a diversified portfolio of projects across a Tier-1 client base and enjoys long-standing relationships, with ~70% of revenue from customers it has worked with for over 20 years. The business is well positioned to continue to drive organic growth, with a secured order book of ~$1B and a pipeline of $3.6B. The acquisition will be funded from NRW's existing corporate debt facilities and is expected to complete by 30 September 2025. The consideration includes an initial cash payment of $122M, an earn-out of up to $60M, and deferred cash of up to $18M. The acquisition multiple of 5.2x EV/EBIT represents a compelling strategic and financial outcome for NRW. The combined group will have a workforce of around 11,500 people, broader geographic reach, and enhanced capabilities across Australia, New Zealand, Canada, and the United States, positioning it well to deliver an expanded range of services and project solutions to clients.

Fredon is expected to generate revenue of ~$840M and EBIT of ~$40M in FY26. The pro forma and forward-looking financial information is for illustrative purposes only and is not represented as being indicative of actual future financial condition and/or future performance.

The sheer scale of the opportunities for Fredon and the broader NRW group through the energy transition over the foreseeable future is significant, with a strong pipeline of data centres and industrial and resources projects supporting a very positive outlook for the combined group.