Emeco to acquire mining rentals specialist Matilda Equipment

Emeco announces that it has entered into a binding agreement to acquire Matilda Equipment for an enterprise value of A$80 million, pre-adjustments for surplus working capital and other customary purchase price adjustments. Matilda has established a strong market presence in Australia’s mining and construction sectors as a supplier of late model, low hour heavy earthmoving equipment. Caterpillar dozers form the majority of its 80 strong fleet, mainly Cat D11T dozers and Cat D10T dozers. The equipment rental fleet also includes Cat graders, Cat loaders, Cat compactors, Cat water carts and Hitachi excavators. The company has forged relationships with many of Australia’s leading miners and contractors operating in the Pilbara in Western Australia, Northern Territory, Queensland, South Australia and New South Wales.

Emeco Managing Director and CEO, Ian Testrow, said: “Matilda Equipment provides Emeco with a niche equipment rental business, allowing it to provide customers an additional service offering. By specialising in low hour, late model, in demand ancillary mining equipment, Matilda Equipment generates strong EBITDA margins and cash, which is in line with Emeco’s deleveraging strategy.”He adds: “Combining Emeco and Matilda Equipment also provides Matilda Equipment with a disposal channel as its equipment reaches the end of its first component life, whilst giving Emeco an additional channel for refreshing and sustaining our fleet of ancillary equipment. The Force component rebuild capability allows us to run these assets through multiple component lives, extending equipment life, lowering costs and further reducing capital expenditure requirements. There is a strong strategic rationale for combining and creating value for the two businesses.”

Testrow added: “We are pleased to welcome Matilda Equipment’s founding CEO, Dan Jauncey, its CFO, Damien Wilson, and the entire Matilda Equipment team to Emeco. Matilda Equipment has a strong cultural alignment to Emeco’s, centered on entrepreneurialism and a customer first approach to providing equipment rental solutions. Matilda Equipment’s deep relationships in the market, in conjunction with its strong procurement capabilities when combined with Emeco’s existing platform presents an exciting opportunity for Emeco going forward.”