Australian metal coating specialist Duratec will pay up to A$12 million for Newcastle-based Pacific Welding Australia to increase its exposure to the country’s eastern seaboard mining and energy sectors and expand its product offering.
ASX-listed Duratec said PWA provided project-based welding, mechanical and specialised fabrication services to strategic clients in the New South Wales Hunter region. It was also certified consignment holder and licensee of Australian manufacturer Steel Mains’ pipe and polyethylene coatings, respectively.
Duratec is outlaying $6 million up front and up to $6 million of earnout payments linked to fiscal year 2027 and 2028 earnings targets. It said PWA generated $1.67 million of FY25 EBITDA on revenue of $14.8 million.
“PWA is uniquely aligned to the services of [Duratec] and provides a fantastic opportunity to scale [Duratec’s] specialist expertise and self-perform model while enhancing our service offering within the energy, mining and industrial sectors,” Duratec managing director Chris Oates said.
“This targeted acquisition further establishes WPF’s east coast base and is a continuation of our expansion strategy within these sectors.”
Duratec has a current market capitalisation of about $700 million.
