Fluor Corporation, a global engineering, procurement, fabrication, construction and maintenance company, is to sell its construction equipment rental company (AMECO), as part of an overhaul of its operations designed to raise over $1 billion.
The Texas-headquartered organisation said that, as a result of a strategic review, the company had concluded that the selling selected businesses will improve its financial stability and allow the remaining businesses to refocus on engineering, construction and maintenance services in core markets.
As well as selling off AMECO, Fluor intends to dispose of its government business, surplus real estate and non-core investments.
South Carolina-based AMECO was founded in 1947. AMECO serves multiple industry sectors, including heavy industrial, energy and chemicals, power, mining and metals, manufacturing, construction, and government.
The leasing company was ranked eighth in the Top 10 Global Player List in 2017 by International Rental News and thirteenth in the 2017 Rental Equipment Register 100 Top Rental Equipment Companies ranking.
Carlos Hernandez, chief executive officer, Fluor Corporation, said: “Together with our board of directors and outside advisors, we took an extensive and comprehensive look at our broader business to determine the best strategic path to return the company to consistent profitable growth.
“The strategic direction we are pursuing as a result of this process builds upon Fluor’s premier competitive position in our core markets in which we expect to deliver sustainable growth, strong cash flow and attractive returns to investors. With this review behind us, we are focusing more than ever before on long-term value creation and operational excellence, and we remain dedicated to moving Fluor forward for the benefit of all of our stakeholders.”
The company also plans to shift to a model in which business groups have direct control over the functions that support operations. These actions are expected to improve the speed of decision making and drive greater accountability within the businesses, producing anticipated overhead reductions of $100 million.