ICA Expands in Peru

Empresas ICA has agreed to acquire a 51% stake in Peru’s San Martin Contratistas Generales, a construction company primarily dedicated to the mining sector, it says. Under the deal, the Mexican builder and engineer will pay $18m up front, and as much as $105m more, based on various performance measures, including San Martin’s 2011-2014 Ebitda. ICA estimated the total would be $80m-$100m. San Martin claims a $440m backlog as of year-end 2011, and booked $240m in revenue last year. The deal follows ICA’s international strategy of entering into and expanding in country’s via partnerships with experienced locals. Closing is expected by the end of June. BBVA advised ICA.