Ausenco sold for US$578m

Resource Capital Funds has struck a deal to sell resources-focused engineering consultant Ausenco to a trio of US investment firms for around US$578 million ($900 million).

The deal represents a significant windfall for RCF, which privatised Ausenco from the ASX in 2016 in a deal which valued it at $150 million.

Ausenco has constructed four major copper concentrators under RCF’s ownership – at BHP’s Carapateena project in South Australia, as well as at the Constancia and Mina Justa projects in Peru and the Mantoverde project in Chile.

Combined, the concentrators produce more than 400,000 tonnes of copper each year. Staff on Ausenco's books more than doubled under RCF’s ownership, from around 1400 to 3000 people.

The Australian business will be bought by Eldridge, Brightstar Capital Partners and Claure Group – investment firms looking to capitalise on the increased demand for battery and energy transition metals.

Eldridge is the holding company of Todd Boehly, a US billionaire with diversified interests including stakes in the LA Dodgers and film studio A24.

RCF head of private equity Martin Valdes said the decision to sell Ausenco was carefully considered.

“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,” he said.

“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.”

Founding director and chief executive Zimi Meka, who is also on the board of Mineral Resources, said the company had grown significantly under RCF’s ownership.

“I’d like to thank RCF for their support over the last nine years which allowed the company to grow and develop into one of the world’s leading service providers to the mining and metals industry,” he said.

The deal for Ausenco is expected to close late in 2023, subject to due diligence.

RCF previously invested in Ausenco in 2002, selling out when the company first listed on the ASX in 2006 before buying back in during 2014.