Emeco Holdings has sold its Victorian infrastructure equipment rental business so it can focus its efforts on the mining industry.
The plans were first announced in July this year, after the company completed a review into its operations and decided to focus on its core mining markets in Australia, Indonesia and Canada.
The $12 million sale includes a portion of the earthmoving equipment fleet, all consumables, spare-part inventories, existing rental contracts and all employees at the company’s Bendigo operations.
Emeco chief executive Keith Gordon said the sale was a positive step in its efforts to release capital from “underperforming” businesses.
“Importantly, this sale has also enabled us to deliver continuity of employment to the employees of the Victorian civil rental business,” he said.
“We have now exited our businesses in the US, Europe and Victoria where we could not see a path to acceptable returns on our invested capital.
“While there is still further work required to release $60 million from the disposal of non-core assets from the Victorian Rental, Australian Sales and Australian Parts businesses, we are satisfied with the progress on our strategy to date.”