Australian rental company Coates Hire Limited last week announced it will acquire the Australian rental business of Cummins Power Rent, a subsidiary of Columbus, Ind.-based Cummins Inc. Terms of the transaction were not disclosed, but Coates said it would finance the acquisition from current financing facilities.
Cummins is expected to contribute about U.S. $3.1 million in revenue in its first full year with Coates, according to Australian Internet reports.
Cummins Power Rent rents diesel powered generators and transformers with control and fuel systems. Rental contracts typically are long-term deals.
Coates, which will use the acquisition to enhance its position in Australia’s large power generation rental market, expects the acquisition to be finalized next month.