TORONTO, March 1 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that it has acquired GCCL Contracting Limited, an asphalt, paving and construction company located in Orangeville, Ontario.
GCCL, a wholly-owned subsidiary of the Greenwood group of companies, has traditionally focused on hot-mix paving. Opportunities exist to expand into other areas of the roadbuilding business such as sanitary sewer installations and water-main work. In recent years, GCCL has generated revenues of approximately $10 million.
The acquisition provides augmented opportunities through partnerships for other Aecon business units such as Aecon Construction and Materials Ltd (ACML), Aecon Utilities, and Aecon Materials Engineering (AME).
Under the share purchase deal, Aecon will pay approximately $4.4 million, of which approximately $2 million will be paid over a four-year term.
"The acquisition of GCCL is a solid addition to Aecon Infrastructure's paving and aggregate operations. We welcome GCCL employees to Aecon and are confident we will now have an even stronger team," said Teri McKibbon, CEO, Aecon Infrastructure Group. "This acquisition strengthens our ability to service our clients in Orangeville and surrounding areas."
Aecon Group Inc. is Canada's largest, publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally. Aecon is pleased to be recognized as one of the 50 Best Employers in Canada as published by Report on Business Magazine.
The information in this news release includes certain forward-looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties which are generally described in the Final Prospectus filed on September 22, 2009 and available on SEDAR at www.sedar.com. Although Aecon believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct.
SOURCE Aecon Group Inc.
For further information: For further information: Mitch Patten, Senior Vice President, Corporate Affairs, Aecon Group Inc., (416) 297-2615, email@example.com, www.aecon.com