A$72m acquisition of Pit N Portal
On 29 January 2020 it was announced Emeco Holdings Limited (Emeco) had entered into a binding agreement to acquire Pit N Portal Mining Services and Pit N Portal Equipment Hire (together Pit N Portal) for an enterprise value of A$72.0 million. The consideration consists of A$62 million in cash and A$10 million in Emeco shares to be issued to the vendors. The acquisition represents an acquisition multiple of 3.6x FY19 Operating EBITDA. The cash portion is to be funded by an underwritten rights issue with completion of the transaction expected by the end of February 2020.
Established in 2002, Pit N Portal specialises in the provision of hard-rock underground mining equipment and services to the Australian underground mining sector. Core operations include equipment rental as well as mining services and maintenance solutions for underground mines across Australia. Pit N Portal operates the largest underground hard-rock equipment rental fleet in Australia. It has a high-quality asset base with over 400 pieces of equipment and employs more than 300 people across Australia.
Emeco was founded in 1972 and is Australia’s largest dedicated mining equipment hire company. Emeco is listed on the Australian Securities Exchange (ASX: EHL) and has market capitalisation of circa A$740 million. Emeco has operations in all key mining regions of Australia and its customers include mining companies and contractors across coal, gold, copper, bauxite and iron ore.