Emeco Already On The Acquisition Trail

Array
(
    [0] => Array
        (
        )

    [1] => Array
        (
        )

)

By Chris Shaw

Upcoming mining services float Emeco Holdings (EMU) is wasting no time in expanding its operating base by making a purchase in the US coal market prior to the stock being listed.

The company has bought a package of heavy earth moving equipment from TSM North America, the 50 machines costing US$11.4m. For the price the company will also receive a number of TSM’s existing equipment rental contracts, further sweetening the deal.

The move is a logical one given Emeco’s management has targeted the US market as one ripe for growing its operations, which have thus far been focused on Australia, Indonesia and Canada.

Following the purchase the company plans to open an office in Kentucky and hopes to parlay its new contracts into a more significant market position, particularly in the Appalachian coal region of the US.

The initial public offering for shares in the company is currently open, with the stock expected to commence trading on the Australian Stock Exchange on July 28th.

Click to view our Glossary of Financial Terms