Monadelphous Group is growing its business in South America by acquiring two Chilean businesses.
The Perth-based engineering company has acquired construction and maintenance contractor Buildtek SpA, which serves the mining sector in Antofagasta, Rancagua and Calama and has a head office in Santiago.
It has also gained plant and equipment hirer Maqrent SpA, which provides machinery for Buildtek and other external customers in the mining industry.
Monadelphous acquired 75 per cent of the companies for approximately CLP 5000 million ($9.5 million) cash, with the option to purchase the remaining 25 per cent in three years.
Buildtek and Magrent, whose customers include BHP, Albemarle, Anglo American, Codelco and GNL Quintero, were founded in 2007 by Victor Valech and employs around 700 people.
Valech will continue to run the two companies’ operations from Chile with support from the Australian contractor.
Monadelphous managing director Rob Velletri said the acquisition was part of the company’s growth strategy to expand its services into new geographical areas.
“The acquisition enables our entry into the growing Chilean resources market through an established and well-recognised operator,” Velletri said.
“This 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.”
This isn’t Monadelphous’ first overseas venture; the company also has facilities and workshops in New Zealand, China, Mongolia, Papua New Guinea and the United States.