Haden
Engineering, a Norfolk Group Ltd. (ASX: NFK) company within its
Mechanical division, has acquired Centre Refrigeration & Air
Conditioning Pty Ltd (CRAC), the largest service based HVAC & R
company in Alice Springs.
The acquistion will increase revenue by approximately $2.8 million
and is expected to be earnings positive immediately. The acquisition
will be funded out of existing cash and banking facilities.
One of the core elements of Haden’s growth strategy is bolt-on
acquisitions that complement Haden technologically and geographically.
The addition of Centre Refrigeration & Air Conditioning adds to
Haden’s national network of branches across Australia, positioning Haden
as a major HVAC & R service provider in Australia. It boosts
recurring revenue earnings and adds highly qualified and experienced
personnel to team.
“The acquisition will enable us to increase our footprint into the
Northern Territory, adding to our existing branch in Darwin, to take
advantage of strong growth in the area being driven by the mining,
tourism and government sectors” said David Rafter, Chief Executive of
Norfolk’s Mechanical division.
CRAC is a diverse business that undertakes a variety of service and
maintenance activities in HVAC and related services in the Alice Springs
region. Its major customers include The Department of Infrastructure,
Planning and Environment, Spotless (Department of Defence) and Smimmac.
The company has enjoyed a sound business relationship with Haden for
over 10 years, subcontracting its services on a number of Haden’s
national accounts. It has earned a reputation for strong management and
leadership supported by competent technicians and staff. It is also
recognised for being a quality provider, offering premium rate services
and strong long term customer relationships.
CRAC’s current owner will become branch manager and the majority of
the workforce will transfer over to Haden.
“We are delighted to be keeping the existing team in place and look
forward to building on the excellent reputation that the business has
earned” said Mr Rafter.
