Japanese rental company Nishio Rental All has acquired 15.74 million shares - an 80 percent stake - in Skyreach, one of Australia's largest privately owned powered access rental companies, for around A$21.2 million ($16 million).
Owner Rod Leech started Skyreach in 1994, and will retain the residual stake in the business and continue in his role as chief executive. The company is based in Caboolture -Brisbane, Queensland – and has 10 branches spread along the East Coast of Australia and employs around 100.
Skyreach revenues in the year to June 2015 were A$32.9 million ($17.3 million)- down 10 percent on 2014, while ordinary income was A$2.1 million ($1.6 million) roughly half that achieved in 2014. Net assets as of June 2015 were A$15.8 million ($11.8 million).
The deal is due to close in April, with Takumi Hosoi of Nishio-Rent All Vietnam and a Nishio manager since 1994 becoming a director of SkyReach
Nishio is one of the five largest equipment rental companies in Japan, and also has locations in Vietnam, Malaysia, Thailand, Singapore, Indonesia and China. Listed on the Tokyo Stock Exchange, Nishio was established over 50 years ago and employs over 3,000 across 368 branches, revenues last year were 123.4 billion yen - roughly $1 billion.
Leech said: "I am pleased to confirm this long term partnership between Nishio and Skyreach in Australia. The investment by Nishio will allow us to grow the Skyreach business further. We are now able to access new areas enabling us to provide an even better service and greater product range to the Australian rental market."
"In coming to the Australian market and understanding our business processes at Skyreach, the Nishio team has been very impressed with the positive culture and experienced team that we have built over the past 22 years. This is an exciting time for all of the employees at Skyreach and I look forward to leading and further growing this company throughout the Australian rental industry."