Duratec expands East Coast footprint with PWA acquisition

Australian engineering and remediation firm Duratec (ASX:DUR) announced a strategic expansion of its national footprint through the acquisition of Davhold Australia, operating as Pacific Welding Australia.

The transaction, executed via Duratec's wholly owned subsidiary WPF Duratec, involves the 100% acquisition of the Newcastle-based specialist.

The move is designed to bolster the group's self-performance capabilities and broaden its service offerings across the lucrative energy, mining, and industrial sectors, particularly throughout the East Coast.

The financial structure of the deal includes an initial upfront payment of $6 million, with an additional earn-out provision of up to $6 million.

The performance-based incentive is contingent upon PWA achieving a combined EBITDA hurdle of $6.4 million across the 2027 and 2028 financial years.

PWA enters the Duratec fold with a solid financial foundation, having delivered $14.8 million in revenue and an EBITDA of $1.67 million in FY25.

With a dedicated team of nearly 60 personnel and a modern 1,000-square-metre workshop in the Hunter Region, the company is well-positioned to scale its innovative solutions.

Duratec Managing Director Chris Oates highlighted that the acquisition is a key component of the company's growth strategy, aimed at delivering sustainable returns for shareholders while deepening their specialist expertise in critical infrastructure sectors.

The completion of the deal remains subject to standard conditions precedent and regulatory adherence to the ACCC’s merger control regime.