Emeco traditionally specializes in heavy equipment rental such as Komatsu excavators
Emeco traditionally specializes in heavy equipment rental such as Komatsu excavators.

Heavy Equipment Specialist Emeco Acquires Transport Rental Firm

Australian heavy equipment rental company Emeco has acquired Rentco, one of Australia’s largest players in the road haulage truck and trailer and rental market. The acquisition is a departure for Emeco, which has always specialized in the rental of heavy earthmoving and mining equipment, with operations in Canada, Chile and Indonesia.

Rentco has an Australia-wide fleet of about 1,800 trucks, trailers and ancillary equipment and is considered a market leader with an average utilization of 78 percent for the past three-and-a-half years, according to Emeco. The acquisition is based on an equity value of AU $53 million (about U.S. $40.5 million) and represents a key move by Emeco under its previously announced three-pillar corporate strategy aimed at diversifying the group outside the core mining sector.

In fiscal 2014, Rentco generated revenue of $45 million and EBITDA of $19 million. Rentco has branches in Perth, Brisbane, Townsville, Darwin, Melbourne, Sydney and Adelaide, Australia.

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