Aecon Group Inc. and CCCC International Holding Limited have announced that they have entered into a definitive agreement under which CCCI will acquire all of the issued and outstanding common shares of Aecon for $20.37 per share in cash, representing an enterprise value of $1.51 billion.
“We believe this is a very positive outcome for Aecon and our key stakeholders,” said Brian Tobin, Aecon’s chairman. “This transaction is the result of an active and diligent sale process that has enabled us to select an outstanding partner and create significant shareholder value.”
“This is an excellent fit for both of our companies,” said Lu Jianzhong, president of CCCI. “Aecon has a strong management team and a very impressive track record that have made it a leading construction company in Canada and a pioneer in public private partnerships and concession operations. It will now gain access to significant capital, complementary infrastructure expertise and an international network to support its growth ambitions.”
CCCI recognizes Aecon as a leading provider of construction services spanning the four core segments of infrastructure, energy, mining, and concessions with competitive know-how, state of the art facilities, experienced personnel and leading market positions. CCCI recognizes Aecon’s importance to Canada and is committed to ensuring that the transaction will deliver benefits to Canada, including:
- CCCI’s size and financial strength will augment Aecon’s access to capital and its ability to bid for larger and more complex projects in Canada, enhancing domestic competition for construction services, and will enable it to compete for more international projects;
- CCCI will seek out areas in which Aecon could deploy its unique expertise across CCCI’s international network;
- Aecon will continue to be headquartered in Canada;
- Retention of Aecon’s Canada-based employees, offering opportunities for Canadians to benefit from expected future growth;
- Continuity of Canadian management and ongoing adherence to Canadian standards of corporate governance;
- Preservation of the iconic Aecon brand in Canada; and
- Aecon’s Corporate Social Responsibility and Sustainability Policy will continue, as will its support for Canadian suppliers and community organizations and its commitment to operate in a safe and responsible manner.
CCCI is the overseas investment and financing arm and a wholly-owned subsidiary of China Communications Construction Company Limited (CCCC), one of the world’s largest engineering and construction groups. Its core business activities include infrastructure construction, infrastructure design and dredging.
CCCI has seen considerable growth in recent years, including through its successful 2015 acquisition of John Holland, one of Australia’s largest engineering and construction companies. Since the acquisition, John Holland has continued to operate under the same name with an Australian management team, has experienced significant business growth in Australia, and expanded overseas. In 2010, CCCI acquired Friede & Goldman, a world leader and innovator in offshore architecture and engineering based in Houston, Texas. After its acquisition by CCCI, Friede & Goldman has seen its revenues increase five-fold.