Emeco raises $50m to fund ongoing growth plans

Emeco Holdings Pty Ltd, the parent company of Belmont-based mining supply company Emeco Ltd, has completed a $50 million capital raising from the company's principal shareholders.

Emeco's principal shareholders are private equity funds advised by Archer Capital and Pacific Equity Partners.

In addition to the $50 million equity contribution to Emeco Holdings Pty Ltd, Emeco Ltd is in the final stages of negotiating a substantial increase in its existing senior debt facility limit with its bankers, which consist of a syndicate of domestic and offshore banks.

It is expected that the negotiation and documentation of the facility increase will be completed within the next week.

Following the increase in Emeco Ltd's senior debt facility, the Emeco Group will have approximately $225 million additional capital available which the group will use to fund its growth, both domestically and internationally. Emeco managing director Laurie Freedman said, "we continue to experience strong demand for our core products and services in all our local, regional and international businesses".

"This demand, and our ongoing search for acquisition opportunities, have required us to re-examine the growth capital requirements of the Emeco Group in the short to medium term. The additional $225 million of capital provided by our shareholders and banking syndicate will enable the Emeco Group to exploit a range of attractive opportunities in Australia and internationally."