US engineering group Fluor Corporation has wrapped up its protracted divestment of the 50-year-old AMECO business with its sale of the South America arm to private-equity-controlled Stracon of Peru.
Fluor announced it was breaking up and selling AMECO in the second half of 2019 and offloaded its North American division for US$73 million to PE firm One Equity Partners in mid-2021. It earlier sold the smaller AMECO Caribbean business.
It did not disclose the sale price of the South America unit.
“AMECO South America is a provider of integrated mobile equipment services, solutions and rentals that serves ongoing operations and capital projects in the mining industry,” Fluor said.
Stracon, controlled by UK PE group Ashmore, was more specific in saying the AMECO equipment rental business managed a fleet of about 1000 specialty assets used by mining sector clients.
“AMECO’s business is concentrated in Chile where it serves a portfolio of clients that include significant copper producers such as Antofagasta Minerals, BHP, Capstone Copper, Codelco and Lumina Copper,” it said.
“The client relationships developed by AMECO over its 29-year history represent an unassailable platform from which Stracon can significantly expand its presence in Chile.”
Stracon Group CEO Steve Dixon said AMECO added 1365 employees and an estimated circa-$50m of annual revenue to Stracon.
“The acquisition will not only strengthen our ability to bid on major projects in the region, but also further diversify our revenue streams,” he said.