Australian mining equipment rental company Emeco has bought transport rentals operation Rentco, also based in Australia, for A$53 million (€38.5 million).
The move is in line with Emeco’s aim of diversifying away from its core industry and gives the company a nationwide fleet of 185 prime movers and 1500 trailers.
Emeco managing director Ken Lewsey said: “Rentco is one of the few players in the sector that has scale, national presence and a solid reputation, particularly for its asset reliability, as well as a strong brand.”
Mr Lewsey added that increasing road freight volumes were another factor that made Rentco an obvious choice.
“Road freight, and more specifically the rental sector, has a number of favourable attributes that are reflected in Rentco’s strong consistent growth and high utilisation rates over extended period.”
Utilisation of Rentco’s ancillary equipment has averaged 78% in the past three-and-a-half years, and the company’s most recent financial results showed revenues of A$45 million (€32.7 million), with EBITDA of A$19 million (€13.8 million).
Rentco will continue to operate on a standalone basis.
Managing director Bob Shier, who will stay on for a minimum of three years, called the combined companies a “formidable force for equipment rental across a range of industries and sectors.”