Emeco Holdings Limited · ASX:EHL

Emeco — Merger or Acquisition (March 2015)

8 slides from Emeco's merger presentation, Mar 13, 2015

  1. Slide 1: Acquisition of Rentco

    For personal use only ACQUISITION OF RENTCO 13 MARCH 2015 KEN LEWSEY, MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER GREG HAWKINS, CHIEF FINANCIAL OFFICER

  2. Slide 2: Transaction Overview

    TRANSACTION OVERVIEW For personal use only The acquisition is a key move under Emeco’s three-pillar strategy and will help diversify outside of the core mining sector. ƒ Emeco has agreed to purchase Rentco based on an equity value of $53 million (enterprise value $82 Transaction highlights million).

  3. Slide 3: Emeco's Strategy

    EMECO’S STRATEGY For personal use only Emeco will be a market-driven business with a range of specialist propositions that are tailored to meet customer needs and delivering excellent returns for shareholders 1 2 3 Reshape the core rental business and Extend customer relationships with Innovate, div

  4. Slide 4: Strategic Rationale

    STRATEGIC RATIONALE For personal use only A strategic growth opportunity which will provide increased scale and diversification. Leverage rental model ƒ Leverages Emeco’s specialist rental and maintenance skills and builds significant diversity outside core mining sector. ƒ Rentco is a leading playe

  5. Slide 5: Key Terms

    KEY TERMS For personal use only Consideration is based on an equity value of $53 million (enterprise value of $82 million). PAYMENT TERMS ƒ To be funded from Emeco’s existing liquidity reserves and Rentco’s retained earnings during earn-out. Cash at settlement $12.5 million ƒ Settlement 31 March 201

  6. Slide 6: Rentco

    RENTCO For personal use only One of the biggest players in the national road haulage rental market. ABOUT RENTCO ƒ Founded in WA in 1994 by brothers Bob and John Shier. ƒ Initially supplied trailers to the agriculture industry, before expansion into others states and industries. ƒ ~1500 trailers, 18

  7. Slide 7: Key Outcomes for Emeco

    KEY OUTCOMES FOR EMECO For personal use only Transaction is immediately earnings per share accretive, assuming no synergies and contributes to stronger group financial metrics with no disruption to existing operations. Earnings growth ƒ Earnings accretive from the outset ƒ Strong and stable earnings

  8. Slide 8: Thank you

    For personal use only Thank you Learn more about us emecogroup.com

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