The sale includes the Aecon Transportation East (ATE) road-building, aggregates and materials businesses based in Ontario.
ATE provides road-building and infrastructure services throughout Ontario to both public and private sector clients. It has a workforce of around 1,000 people.
Aecon Transportation East contributed around 7% of group consolidated revenue in 2022. Selling the business allows Aecon to pay down some of the debt on its revolving credit facility.
Aecon group president and chief executive Jean-Louis Servranckx said: “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 decarbonisation.
“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 said that on closing the deal, it will enter into a strategic cooperation agreement with GIP for “certain major projects and pursuits in Ontario that leverage both Aecon’s heavy civil construction services and GIP’s roadbuilding capabilities.”
The sale is expected to complete during the first half of this year.
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