Emeco Holdings Limited (ASX:EHL) entered into a binding agreement to acquire Pit N Portal Mining Services Pty Ltd and Pit N Portal Equipment Hire Pty Ltd for AUD 72 million on January 29, 2020. The acquisition is on a cash free, debt free basis. The consideration consists of AUD 62 million in cash and AUD 10 million Emeco shares to the vendors (issued at the Entitlement Offer price) and is subject to pre-adjustments for surplus working capital and other customary purchase price adjustments. As part of the transaction, Emeco Holdings Limited issued 4.8 million shares to acquire Pit N Portal Mining Services Pty Ltd and Pit N Portal Equipment Hire Pty Ltd. The shares issued as sale consideration will be subject to a 12 month escrow period. The cash component of the acquisition will be primarily funded through a fully underwritten pro-rata accelerated non-renounceable entitlement offer to raise approximately AUD 65 million. The company issues new ordinary shares at an offer price of AUD 2.7 per new share (Offer Price) to raise gross proceeds of AUD 65 million. The retail entitlement offer will be open on February 5, 2020 and will be closed on February 14, 2020. For the year ended June 30, 2019, Pit N Portal has revenue of approximately AUD 101 million and EBITDA of AUD 20 million. The transaction is expected to be completed by February 28, 2020. The acquisition is EPS accretive on an FY19 pro forma basis post transaction. Goldman Sachs Australia Pty Ltd acted as financial advisor to Emeco Holdings Limited.