The family-owned Stewart’s Automotive Group has bought local-based fleet management, automobiles, industrial equipment and automotive products company AMECO Caribbean from its American parent company, Fluor Corporation.

The sale price is said to be US$22 million ($3.3 billion).

Founded in 1912, Fluor Corporation — a global engineering, procurement, fabrication, construction and maintenance company with projects and offices on six continents — decided to sell its interest in the Jamaican-based company amid a restructuring exercise to shore up its dwindling finances.

AMECO will operate under a new name, JAMECO Equipment Company Limited. The new owners are not saying how the change will affect the current staff complement, but it is expected that there will be some realignment to benefit from economies of scale.

The sale of AMECO was announced on Monday by Fluor, which is listed on the New York Stock Exchange. It represents the culmination of plans announced way back in September last year. Fluor declared then that it will be fully divesting its AMECO construction rental company, adding that the sale marks the initial milestone of accomplishing its realignment strategy with an ongoing focus on core markets.

With the purchase of AMECO Caribbean, Stewart’s Automotive Group has further expanded its operations into a first-class, full-service dealership, carrying one of the widest ranges of spare parts and accessories of car dealers in the English-speaking Caribbean.

According to Jackie Stewart Lechler, a director of Stewart’s Automotive, “JAMECO Equipment Company Limited looks forward to continuing the fine tradition of premier fleet management service to which AMECO customers have become accustomed, to be complemented by the owner’s transport industry experience.”

Stewart Lechler is also a director of JAMECO Equipment Company.

AMECO has been in Jamaica since 1998, providing customers with fleet and equipment management solutions, as well as tool solutions to a wide range of industries, including telecommunications, mining, beverage, industrial, and construction.

Fluor Corporation has also sold its government and equipment businesses. The Irving, Texas-based company expects to rake in more than US$1 billion from the sale of these assets and monetise surplus real estate and non-core investments, while reducing overhead costs by US$100 million.

Its remaining businesses will refocus on engineering, construction and maintenance services in core markets.