Fluor's government business is drawing interest from potential buyers, CEO says - The Dallas Morning News

Irving-based Fluor has seen “very substantial” interest from potential buyers since it put its government business up for sale as part of a restructuring plan announced earlier this year, chief executive officer Carlos Hernandez says.

Hernandez told investors at the Credit Suisse conference in Palm Beach this week that private equity and strategic buyers have shown interest .

“I have no doubt we are going to be getting a very good multiple on the business,” Hernandez said, adding that potential new owners may look to consolidate the government business, which has shown slim margins.

Fluor also has seen a “lot of interest” in the sale of its Ameco construction rental equipment business, another of the assets it is looking to unload. Hernandez said the company expects to close a deal for Ameco by mid-2020, and that a sale of the government business could take longer than that.

The engineering and construction firm announced a major restructuring in September that includes closing regional offices and selling assets. At the time, Fluor executives said they were hopeful they could sell the business lines in early 2020.

Hernandez became CEO about seven months ago following the sudden departure of David Seaton, who stepped down after guiding the company to $1 billion in write-offs in three years. He told the Credit Suisse gathering that he’s "confident we’ve got our arms around the risks now.”

The $100 million in cost-cutting measures announced in September should be completed by mid-2020, Hernandez said. Fluor is closing offices in Argentina and Brazil as well as “rationalizing space” the company has in Greenville, S.C., and Houston, he said.

“We’re gonna hit the $100 million and exceed it,” the chief executive said.

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Fluor's government business is drawing interest from potential buyers, CEO says - The Dallas Morning News
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