Business
Aecon to Sell Roadbuilding Business in Ontario to Green Infrastructure Partners for $235 million
Aecon to Sell Roadbuilding Business in Ontario to Green Infrastructure Partners for $235 million ...
About this update from Aecon Group Inc.
[{"type":"text","content":"\n \n \n \n Aecon to Sell Roadbuilding Business in Ontario to Green Infrastructure Partners for $235 million\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n Complements strategic focus on end markets related to energy transition and sustainability\n \n \n \n \n Strengthens balance sheet\n \n \n \n \n Go-forward strategic cooperation agreement with GIP\n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n March 1, 2023\n \n \n /CNW/ - Aecon Group Inc. (TSX: ARE) (\"Aecon\" or the \"Company\") announced today 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\n \n Ontario\n \n for\n \n $235 million\n \n in cash.\n \n \n \n \n \n \n \n \n \n ATE provides roadbuilding infrastructure solutions throughout\n \n Ontario\n \n to the provincial government, municipalities, and private clients through a workforce of approximately 1,000 employees.\n \n \n In 2022, ATE's revenue represented approximately 7% of Aecon's consolidated revenue as part of the Construction segment.\n \n \n \"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\n \n Jean-Louis Servranckx\n \n , President and Chief Executive Officer, 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.\"\n \n \n \n Strategic Cooperation Agreement\n \n \n \n Upon closing of the sale, Aecon and GIP will enter into a strategic cooperation agreement for certain major projects and pursuits in\n \n Ontario\n \n that leverage both Aecon's heavy civil construction services and GIP's roadbuilding capabilities.\n \n \n \n Use of Proceeds\n \n \n \n Upon closing, Aecon ex...