It is the second major buy for Perth-based Emeco in the past half-year; it purchased Force Equipment last October for A$69.8 million.

Matilda Equipment's fleet includes 83 pieces of equipment; compared to its own portfolio average age of 25,000 hours, Matilda's machines average 9,300 hours. The company put its focus on rentals that are high in demand but also low in repair and maintenance costs.

Emeco managing director and chief executive Ian Testrow said adding Matilda to its presence will give it a niche rental business and add to its service offerings.

"Combining…also provides Matilda Equipment with a disposal channel as its equipment reaches the end of its first component life, whilst giving Emeco an additional channel for refreshing and sustaining our fleet of ancillary equipment. The Force component rebuild capability allows us to run these assets through multiple component lives, extending equipment life, lowering costs and further reducing capital expenditure requirements.

"There is strong strategic rationale for combining and creating value for these two businesses," he added.

Emeco has launched a A$90 million fully underwritten entitlement offer to fund the acquisition along with associated costs.