Seven Group Holdings
(ASX:SVW) has snapped up 100 per cent of the Coates Hire group.
It comes as the diversified operating and investment group in media, mining and construction purchased the remaining holding in the group (53.3 per cent) for $517 million.
The purchase is 15 per cent earnings accretive to its underlying EPS on FY17. It will also increase the group’s pro-forma EBIT from $297 million to $415 million.
The company says full ownership of Coates Hire expands its industrial services division.
Coates is also set benefit from an increase in demand for construction equipment and heavy machine.
Shares in Seven Group Holdings
(ASX:SVW) closed 0.8 per cent lower yesterday to $11.18.
