Aecon Group Inc. selling contract mining business for $199.1 million
October 3, 2018 | By The Canadian Press
TORONTO – Aecon Group Inc. has signed a deal to sell its contract
mining business to North American Construction Group Inc. for $199.1
million in cash.
The contract mining business provides overburden removal and
environmental reclamation services, primarily in the Alberta
oilsands.
Upon the deal, NACG paid Aecon a $10-million deposit, while the
balance will be paid in four instalments with the first payment of
$153.6 million due when the deal closes.
The remaining three payments of $11.8 million each will be paid
six, 12 and 18 months following closing.
The sale is subject to various purchase price adjustments and
customary closing conditions.
Aecon says it will continue to operate the business, with no
disruption to its clients or employees, pending the close of the
transaction.
“Aecon is executing on a record level of backlog and pursuing an
unprecedented number of opportunities across our infrastructure and
industrial segments,” said Jean-Louis Servranckx, president and CEO
of Aecon.
“The capital intensive contract mining business is outside
Aecon’s core construction activities and focus. This transaction is
consistent with Aecon’s drive to maintain and strengthen our balance
sheet flexibility, which is key to the strong growth trajectory we
are seeing in our core business.”
