Emeco Holdings Limited (ASX:EHL) signed a binding agreement to acquire Force Equipment Pty Ltd for an enterprise value of AUD 69.8 million on October 31, 2017. The enterprise value is pre-adjustments for surplus working capital and other customary purchase price adjustments. The acquisition of Force Equipment Pty Ltd will be funded by a fully underwritten AUD 80 million pro-rata accelerated non-renounceable entitlement offer. The transaction reported an implied acquisition multiple of 2.96x operating EBITDA. Force Equipment Pty Ltd reported revenue of AUD 86.1 million and operating EBITDA of AUD 23.6 million for the year ended December 31, 2016. Force Equipment Pty Ltd’s Chief Executive Officer and Chief Financial Officer will join Emeco Holdings Limited. The employees of Force Equipment Pty Ltd will be retained. The acquisition is subject to customary conditions precedent and termination rights in favor of Emeco with completion of the acquisition expected in November 2017. As a result of the transaction, Emeco’s pro forma net debt / financial year 2017 run rate operating EBITDA is expected to reduce from 3.9 times to 3.2 times. Macquarie Capital (Australia) Limited is acting as sole financial adviser while Baker & McKenzie is acting as legal adviser to Emeco Holdings Limited on the acquisition. Azure Capital Pty Ltd. is acting as sole financial adviser to Force Equipment Pty Ltd. Emeco Holdings Limited (ASX:EHL) completed the acquisition of Force Equipment Pty Ltd on November 30, 2017.