Monadelphous has acquired 75% of the construction and maintenance services contractor and plant and equipment hire company, respectively, for about A$9.5 million cash (US$6.4 million). The group also has an option to purchase the remaining 25% in holdings within three years.
Specifically, the company is seeking to enlarge its footprint in Chile's mining sector, and the transaction will give it that opportunity. Buildtek has facilities in Antofagasta, Rancagua, Calama and a head office in Santiago. Maqrent provides a range of plant, machinery and equipment for hire to Buildtek and external customers in the mining and construction sectors. Its customer base includes Codelco, BHP, Albemarle, Anglo American and GNL Quintero.
Monadelphous managing director Rob Velletri confirmed the deal formed part of its markets and growth strategy to expand existing services into new geographical regions.
"The acquisition enables our entry into the growing Chilean resources market through an established and well-recognised operator. We will support Buildtek and Maqrent as they continue to grow and expand in the South American market," he said.
"Today's announcement is the result of significant efforts over a number of years to understand the South American market, and we are looking forward to the opportunities ahead."
Perth, Australia-based Monadelphous was advised and supported in its plan by the Department of Foreign Affairs and Trade and Austrade. The engineer also has facilities in New Zealand, China, Mongolia, Papua New Guinea and the US.