Fluor sells Ameco South America
By Lewis Tyler15 March 2023
Fluor Corporation has sold its construction and mining equipment business Ameco in South America to Stracon Group. Financial details of the deal have not been released.
Peru-headquartered Stracon, which supplies mining and construction services across North and South America, says the acquisition will enable it to expand its geographic reach and service offerings in the mining sector.
According to the company, Ameco manages a fleet of approximately 1,000 specialty assets that are used by the mining sector and comes with an “unassailable platform” of relationships from which Stracon can expand its presence in Chile.
Steve Dixon, CEO, Stracon Group, said, “I want to welcome to Stracon the 1,365 people that have all worked tirelessly to establish Ameco as a trusted service provider to the mining sectors of both Peru and Chile.
“The Acquisition will add both scope and scale to Stracon’s operations, increase revenues by approximately 25%, add new service lines and geographies, and be immediately accretive to earnings.
“The Acquisition will not only strengthen our ability to bid on major projects in the region, but also further diversify our revenue streams.
“We are abundantly aware of how important AMECO’s experienced leadership team and the continued commitment of Ameco’s employees are to delivering client success and achieving the cross-selling synergies that are possible.”
Following the acquisition, Fluor has now completed its plans to divest the construction equipment rental business, which it announced in 2019.
Since then, the company has sold Ameco assets in Africa, the Caribbean, Mexico and North America to allow it to focus on its “core business and capital priorities.”