Fluor Corporation announced the results of its strategic review and operational review. As a result of the strategic review, the Texas company is initiating plans to sell its construction equipment rental company, AMECO,  as well as its government business, and to monetize surplus real estate and non-core investments. Fluor anticipates these actions to generate in excess of $1 billion in aggregate proceeds.

The 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. AMECO ranked No. 8 on the Top Ten Global Player List in 2017 by International Rental News and No. 13 on 100 Top Rental Equipment Companies in 2017 by Rental Equipment Register.

Fluor concluded that the divestitures of select businesses will simultaneously improve the financial stability of the company and allow the remaining businesses to refocus on engineering, construction and maintenance services in core markets. The strategic review evaluated the entire portfolio of businesses.

“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,” said Carlos Hernandez, Chief Executive Officer, Fluor. “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.”

Fluor anticipates these actions will generate long-term value to shareholders through its best-in-class expertise in all aspects of project execution while using a disciplined project and portfolio risk management approach. This renewed focus should result in a strengthening of the balance sheet, improving the company’s credit rating and ensuring adequate liquidity for ongoing operations.

Lazard is serving as an advisor to Fluor Corporation.