Australia’s largest rental firm National Hire Ltd. said its subsidiary Allight Holdings Pty Ltd. has signed an agreement to acquire Pump Rentals Pty Ltd, which, through its wholly owned subsidiary Sykes Group is one of the world’s largest manufacturers and distributors of auto prime pumps for the mining, construction and civil engineering sectors. The proposed acquisition price is about AU $50 million (about U.S. $49.3 million).

The acquisition will expand the product offering and export market penetration of National Hire’s equipment sales and support business, Allight. The transaction is subject to an additional $5 million if the combined equipment sales and support business achieves certain EBIT hurdles before the end of 2012.

The acquisition will be funded by available cash reserves and a combination of new and existing debt facilities, National Hire said.

The acquisition is consistent with National Hire’s strategy to pursue value accretive acquisition opportunities to expand its business.

“This is a company-transforming acquisition for National Hire’s equipment sales and support business,” said Andrew Aitken, managing director of National Hire. “Sykes pumps employ advanced technology and are regarded as a premium brand in the global pump industry. Sykes Group provides scale, volume and distribution opportunities for National Hire that will help underpin future growth.” Sykes Group has established distribution networks and customers in markets such as the United States, United Arab Emirates, Africa, Indonesia and New Zealand.

National Hire Group’s holdings in Australia include national chain Coates Hire as well as various Cat Rental Store locations.