Coates Hire has entered an agreement to acquire Queensland-based Compressor Hire Services (CHS).
Five of CHS' eleven branches will plug gaps in Coates' coverage of the Queensland market, with the remaining six to be merged with the company's existing operations.
The business will enhance Coates product range and provide local knowledge from a highly skilled and experienced workforce.
CHS was established in 1964 and since expanded from air compressor hire to the provision of general equipment hire and shutdown services, with a product range similar to that of most Coates branches.
The company traditionally provided its services to local authorities and the agricultural community, but has recently successfully diversified into the civil construction market. The acquired business will contribute sales of approximately $18 million in the first full year.
The acquisition price, undisclosed and confidential between the parties, will be funded from current financing facilities. Completion of the acquisition is expected by April 30, 2004.
Coates is Australia's largest equipment hire company with more than 115 years of experience in the industry, supplying to a wide variety of markets including engineering civil construction, building construction and maintenance, mining and resources, manufacturing, government, industrial shutdowns, and events.