Emeco Holdings Limited
(ASX:EHL) has inked a deal to buy one of Australia’s largest players in the road haulage truck and trailer rental market, Rentco.
The mining equipment rental business says the acquisition is based on an equity value of $53 million and an enterprise value of $82 million.
Emeco has pursued the acquisition to diversify outside of its core mining business and expects the deal to be tied up by the end of this month.
Managing Director Ken Lewsey says Rentco will fit well with Emeco’s strategic objectives and add immediate value through an enhanced return profile, operating diversification, improved credit metrics and less capital intensity.
Emeco Holdings reported a net loss of $53.55 million in the first half of the 2015 financial year.
