Yesterday, National Plant & Equipment Pty Ltd.(“National Plant & Equipment”) signed a historic deal with international trading house and mining power Mitsui & Co., Ltd.(“Mitsui & Co.”), seeing Mitsui & Co. become a powerful minority shareholder (49.9%) in the Australian mining equipment rental company. The deal is worth well in excess of $100 million.
National Plant & Equipment founder and managing director, Mark Ackroyd said the deal will bolster National Plant & Equipment’s position as one ofAustralia's leading suppliers of heavy machinery and earthmoving equipment to the mining and construction industries.
"This deal greatly boosts our potential growth. With Mitsui & Co. as a partner, we have the potential to become of the largest suppliers of rental equipment to the mining industry,” said Mr. Ackroyd.
“Our new partnership could also see National Plant & Equipment expand its reach in Australia and potentially globally,” he said.
“This deal didn't happen overnight. Both sides have worked hard to ensure this deal delivers optimum benefit to all of our clients. With a transaction well in excess of $100 million, we're delighted with the result."
“National Plant & Equipment has built a reputation for reliability and strength, and we feel that Mitsui & Co. is the ideal partner to further grow that reputation," said Mr. Ackroyd.
A representative of Mitsui & Co. said the share acquisition in National Plant & Equipment gave the company the opportunity to become an effective participant in the mining equipment rental business and to continue the quick and efficient supply of mining equipment to all users.
Mitsui & Co. has nationwide investments in coal, iron ore, power generation, oil, gas, copper and more, as well as an incorporated joint venture with a share in Komatsu Ltd. This deal sees Mitsui & Co. greatly expand its position in the burgeoning mining equipment industry.
National Plant & Equipment was founded in 1997 and has grown into one of the largest dry-hire and rental companies in Australia with more than 200 machines, including dozers, dump trucks, excavators, graders and specialised mining equipment.
“National Plant & Equipment has gone from strength to strength and we couldn't be happier, it's the dawn of big things to come. Signing this deal is a real success story for what started as a relatively small Aussie business." said Mr Ackroyd.
The precise value of the deal remains undisclosed.