Perth-based National Hire Group expands its business operations by acquiring Victoria-based Monash Hire for an undisclosed amount.

National Hire subsidiary Coates Hire will fund the acquisition from existing cash reserves and is expected to be completed on 4 June.

The acquisition include a well maintained hire fleet, 35 employees and five branches, three of which are located in Victoria, one in Queensland and Auckland.

Coates Hire managing director Andrew Aitken said the acquisition is expected to add earnings and is consistent with the strategy of growing the core business where appropriate returns can be generated.

"The acquisition of Monash Hire indicates the commitment of Coates Hire's management team and board to continue to develop the business," said Aitken.

Coates Hire said the acquisition will provide additional hire fleet, together with active contracts and Monash Hire customers. It is expected to provide an entry point to the New Zealand hire market, providing an opportunity for the rental company to evaluate growth prospects in a market in which it does not currently operate.

The acquisition of Monash Hire is the first significant acquisition by Coates Hire since it merged with the National Hire business in January 2008.

Coates Hire is the largest rental business in Australia. It has been hiring equipment to the mining construction and event management sectors for more than a century and has a network of over 200 branches across Australia. It is owned by the Coates Group Holdings Pty Ltd.

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