PERTH (miningweekly.com) – Private equity firm Resource Capital Funds (RCF) has announced plans to sell global engineering firm Ausenco to US investment firms Eldridge, Brightstar Capital Partners and Claure Group, in a deal valued at an estimated $578-million.

RCF’s original investment in Ausenco stems back to December 2014, and the company was subsequently privatised from the Australian Securities exchange in 2016, in a deal that valued Ausenco at A$150-million.

RCF said in a statement on Friday that the firm was immensely proud of the transformation and progress Ausenco has achieved during its ownership.

During RCF’s ownership, Ausenco has focused on delivering copper for the energy transition, constructing four major copper concentrators. These include Carrapateena, representing one of the largest copper reserves in Australia, Constancia and Mina Justa in Peru and Mantoverde in Chile, still under construction, for a combined annual copper capacity of more than 400 000 t.

In addition to copper, Ausenco has grown capabilities in sustainability, lithium and operational performance. Ausenco now has more than 3 000 employees, up almost 1 600 employees since RCF privatised the business in 2016.

 “We believe our investment in Ausenco clearly displays the strength and differentiation of our investment strategy, which selectively seeks long-term investments in mining businesses we can help grow, while generating strong and consistent returns along the way,” RCF managing partner James McClements said.

“Ausenco’s innovative culture aligned well with RCF, and the benefits of our relationship cannot be measured purely in financial terms. This is a fantastic outcome for all parties involved, and we wish Ausenco continued success.”

RCF’s head of private equity, Martin Valdes, noted that over the last nine years, RCF has been very proud to work with the Ausenco team to create a leading engineering company, participating in its success and growth.

“This transaction is a natural step and marks the next chapter in Ausenco’s journey, confident that the company is well-prepared to embark on its next phase of growth. The decision to sell Ausenco was made after careful consideration, with the belief that this transition will allow the company to further expand its reach and make an even greater impact in the growing engineering sector. Our relationship will continue as like-minded collaborators to deliver the necessary commodities to support the energy transition.”

The transaction is expected to close in late 2023, subject to satisfaction of customary closing conditions.