Engineering company Monadelphous Group is expanding its South America presence through the acquisition of 75% stakes in Chile-based construction and maintenance services contractor, Buildtek SpA, and plant and equipment hire company, Maqrent SpA.
Buildtek provides multidisciplinary construction and maintenance services to the mining sector in Chile, having facilities in Antofagasta, Rancagua and 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. Customers include major resources and energy companies such as Codelco, BHP, Albemarle, Anglo American and GNL Quintero. The business achieved an annual turnover in excess of CLP20 billion (A$24.7 million) in the last financial year.
Monadelphous Managing Director, Rob Velletri, said the acquisition formed part of the company’s markets and growth strategy, through the expansion of its existing services into new geographical regions. The announcement was the result of “significant efforts” over a number of years to understand the South American market, he added.
“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.
Monadelphous is paying CLP5 billion in cash to acquire 75% of the companies, with an option to purchase the remaining 25% in three years’ time. The companies were founded in 2007 by Victor Valech and employ around 700 people. Valech will continue to manage and run the operations in Chile, with support from Monadelphous.