Emeco snaps up independent Vic earthmoving co

Earthmoving equipment supplier Emeco Ltd's wholly-owned subsidiary Emeco International Pty Ltd will acquire Andy's Earthmoving, a large independent equipment rental and sales business in Victoria.

Under the agreement with Paradise Resources Pty Ltd, the holding company for Andy's, Emeco will acquire about 60 machines and all inventory and parts used in the business.

The purchase price for the sale was not disclosed to the Australian Stock Exchange, but Emeco chief executive Laurie Freedman said payment for the sale included both cash and Emeco scrip.

Emeco considers Andy's to be well-positioned to take advantage of the rapidly expanding gold sector and new mineral sands developments.

Andrew Hoare, owner of Paradise Resources, will join Emeco's senior Australian management team and will be involved in Emeco's equipment procurement activities.

"Emeco's global procurement capability is one of the key drivers of Emeco's success and Andy will bring considerable skill and experience to Emeco in this area of our business," Mr Freedmand told the ASX.

"The acquisition of Andy's is Emeco's first Australian acquisition since hte leveraged buy out of the Emeco group in January 2005 and will enable Emeco to explore growth opportunities and expand its business model in south eastern Australia, particularly regional Victoria, southern New South Wales and Tasmania."

It is expected a formal sale agreement for the sale will be disclosed in the next few days, with settlement anticipated early in the new year.

Redcliffe-based Emeco is Australia's largest provider of earthmoving equipment.