TORONTO, June 25, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) ("Aecon" or the "Company") announced today that it has entered into an agreement to purchase the convertible preferred equity investment (the "Preferred Shares") held by funds managed by the Power Opportunities strategy of Oaktree Capital Management, L.P. ("Oaktree") in Aecon's utility infrastructure subsidiary, Aecon Utilities Group Inc. ("Aecon Utilities"; together, the "Transaction"), with closing expected to occur in the fourth quarter of 2026.
HIGHLIGHTS
$320 million purchase price, implying a $1.2 billion equity value for Aecon Utilities
Aecon secures its 100% interest in Aecon Utilities by acquiring Oaktree's as-converted 27.5% ownership interest in Aecon Utilities
Positions Aecon to capture the full economic benefit associated with Aecon Utilities' electrical, communications, and pipeline distribution end-markets
Strengthens integrated One Aecon platform and ability to deliver comprehensive solutions to power and utility clients
Expected to be accretive to adjusted earnings per share, and to be funded from existing cash resources and available credit facility capacity
Simplifies Aecon's capital structure and reduces complexity of financial reporting
The $320 million purchase price for the Preferred Shares is based on Oaktree's as-converted 27.5% ownership interest in Aecon Utilities and represents an equity value of $1.2 billion and an enterprise value of $1.5 billion for Aecon Utilities. The Transaction implies a 13.0x enterprise value multiple to Aecon Utilities' trailing twelve-month ("TTM") acquisition-related pro forma Adjusted EBITDA(1) to March 31, 2026.
Aecon Utilities is a leading North American provider of utility infrastructure solutions operating across three core end-markets: electrical, communications, and pipeline distribution. Since the completion of Oaktree's Preferred Shares investment in Q4 2023, Aecon Utilities has developed into a larger and more diversified utility services platform with greater exposure to electrical end-markets (~49% of TTM acquisition-related pro forma revenue to March 31, 2026) and a greater presence in the U.S. (~26% of TTM acquisition-related pro forma revenue to March 31, 2026), which are both largely underpinned by long-term repeatable work programs through Master Service Agreements.
The Transaction is expected to provide immediate and long-term benefits to Aecon, including:
Full Capture of Aecon Utilities' Growth in Target End-Markets – Aecon Utilities is positioned for opportunities tied to strong demand trends in electrical, communications, and energy infrastructure, supported by utility capital investment programs, data centre-driven demand dynamics, and connectivity requirements in Canada and the U.S.
Integrated and Enhanced Operating Platform – Increasing procurement pipeline of major projects and programs that will benefit from a fully integrated delivery platform. The Transaction enables stronger alignment between Aecon Utilities, Aecon's other Construction sectors, and Concessions segment, while enhancing Aecon's overall presence and exposure in target markets.
Simplifies Aecon's Capital Structure with Meaningful Financial Benefits – Elimination of the Preferred Shares of Aecon Utilities from Aecon's capital structure is expected to be accretive to Aecon's adjusted earnings per share. The simplified ownership structure will allow Aecon to optimize its financial capacity to support growth and invest in operations in a more efficient manner.