Ontario Construction News staff writer
Aecon announced last week that it has reached a deal to sell its Aecon Transportation East (ATE) Ontario road building business to Green Infrastructure Partners Inc. for $235 million.
ATE provides road building infrastructure solutions across Ontario to the provincial government, municipalities, and private clients and employs a workforce of about 1,000.
“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 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.”
Aecon and GIP will enter into a “strategic cooperation agreement” for certain major projects and in Ontario that leverage both Aecon’s heavy civil construction services and GIP’s roadbuilding capabilities.
Upon closing, Aecon expects to use the net proceeds from the transaction to pay down debt on its revolving credit facility.
The Aecon and GIP boards approved the transaction and the sale is expected to close in the first half of 2023.