Emeco managing director Ken Lewsey (left) and his Rentco counterpart Bob Shier.

Emeco managing director Ken Lewsey (left) and his Rentco counterpart Bob Shier.

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.”

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