Aecon Group Inc. announced that it has entered into a definitive purchase agreement with Green Infrastructure Partners Inc. (GIP) under which Aecon has agreed to sell its Aecon Transportation East (ATE) roadbuilding, aggregates and materials businesses in Ontario for $235 million in cash.
ATE provides roadbuilding infrastructure solutions throughout Ontario to the provincial government, municipalities, and private clients through a workforce of approximately 1,000 employees.
In 2022, ATE’s revenue represented approximately seven per cent of Aecon’s consolidated revenue as part of the Construction segment.
“Aecon’s efforts are increasingly focused on helping meet its clients’ sustainable infrastructure needs and harnessing the opportunities that are expected to come from the transition to a net zero economy through decarbonization,” said Jean-Louis Servranckx, president and CEO, Aecon Group Inc. “This transaction is consistent with Aecon’s goal of targeting prudent balance sheet leverage and liquidity and also reduces the overall capital intensity of Aecon’s business.”
“We are excited to add ATE’s vertically integrated roadbuilding solutions’ business in Ontario to GIP’s existing platform, further solidifying the breadth of our services to support public infrastructure from our operations in Ontario, British Columbia, Manitoba, Saskatchewan and Quebec,” said Patrick Dovigi, GIP’s executive chair. “We saw a tremendous opportunity to enhance the scale and service offerings around our vertically integrated Coco Paving platform, with the self-perform capabilities initially added from GFL’s infrastructure division and to accelerate our growth through acquisition, further consolidating GIP’s position as one of Canada’s premier suppliers of critical infrastructure maintenance services. This acquisition is one of those great opportunities.”
Mr. Dovigi added, “This acquisition will add significant scale to GIP’s suite of vertically integrated roadbuilding services and materials supply capabilities including 8 aggregate quarries to supply both internally and external customers, eight asphalt plants, and most importantly, close to 1,000 highly skilled and dedicated employees. The combination of ATE and GIP’s roadbuilding expertise will position GIP with the skills, equipment and services to perform virtually any size of provincial, municipal or private infrastructure project. We’re looking forward to welcoming ATE’s employees to the GIP family.”
Featured image: (Green Infrastructure Partners Inc.)