ATCO eyes South American market, buys into Chilean modular housing firm
Canadian company plans to use newly-acquired stake to build international client base
CALGARY—ATCO Group is looking to gain a foothold in the South American market by acquiring a stake in a Chilean modular housing firm.
The Calgary-based company has announced it has purchased a 50 per cent interest in Sabinco Soluciones Modulares S.A., a space rental and workforce housing business that accounts for approximately 10 per cent of the modular housing market within Chile.
“Re-establishing a position in the South American market allows us to expand our global reach and further diversify our revenue sources,” Stephen Lockwood, president and CEO of the company’s Structures & Logistics division, said.
Following the deal, which included purchase of land and funds that will go toward a future manufacturing facility, Sabinco will operate under the name ATCO-Sabinco S.A.
“ATCO’s expertise in manufacturing and project execution, paired with Sabinco’s diverse client base and local knowledge, will allow ATCO-Sabinco S.A. to expand its product offering and grow its customer base.”
Using Sabinco’s established position in Chile, the Canadian company hopes to use the partnership as a springboard for further growth in South America. It did not disclose how much it paid for the 50 per cent interest.