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.