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Be the first with the news that moves the market- Aecon Group (ARE) is selling the roadbuilding division of its business to an Ontario company in a multi-million-dollar deal
- The Vancouver-based commercial construction firm is selling the unit to Toronto-based Green Infrastructure Partners
- The all-cash deal is worth $235 million
- Aecon Transportation East provides roadbuilding infrastructure solutions across much of Ontario with public and private sector customers
- Aecon Group (ARE) is up 15.48 per cent, trading at $11.71 per share
Aecon Group (ARE) is selling the roadbuilding division of its business in a multi-million-dollar deal.
The Vancouver-based commercial construction firm is selling Aecon Transportation East to Toronto-based Green Infrastructure Partners.
The all-cash deal is worth $235 million.
Aecon Transportation East provides roadbuilding infrastructure solutions across much of Ontario. Its clients include the provincial government, several municipalities, and private clients. The company employs around 1,000 people and accounted for around seven per cent of parent company Aecon’s consolidated revenue last year.
Aecon called the sale a move to streamline its operations and balance sheet.
“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 President and CEO, Jean-Louis Servranckx.
“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,” he added.
Aecon Group (ARE) is up 15.48 per cent, trading at $11.71 per share at 11:02 am ET.
