13 March 2015
Emeco is pleased to announce it has entered into an agreement for the strategic purchase of Rentco, one of Australia's largest players in the road haulage truck and trailer rental market.
The acquisition is based on an equity value of $53 million (enterprise value of $82 million) and represents a key move by Emeco under its previously announced three-pillar corporate strategy which is aimed at diversifying the group outside the core mining sector.
Rentco has an Australia-wide fleet of approximately 1800 trucks, trailers and ancillary equipment and is considered a market leader, having maintained average utilisation of 78% for the past three-and-a-half years.
In FY14 Rentco generated revenue of $45 million and earnings before interest and tax (EBITDA) of $19 million and as part of the Emeco Group will be immediately earnings per share (EPS) accretive and contribute to improved financial metrics across the group including a decline in Emeco's net debt to EBITDA ratio.