- Aecon now one of the three largest construction companies in the
northern Ontario market -
TORONTO, Dec. 20 /CNW/ - Aecon Group Inc. ("Aecon") (TSX:ARE) today
announced that it has completed the previously disclosed purchase of the
assets of Leo Alarie and Sons Limited ("LAS"), one of the largest construction
companies in northern Ontario.
A private company, owned primarily by the Alarie Family, LAS is an
integrated construction and materials company active throughout northern
Ontario in heavy construction (highways, hydro-electric projects, sewer and
water, pipelines, etc.), engineered construction (design/build projects such
as bridges and mine site infrastructure requiring substantial engineering),
pre-engineered buildings, contract open pit mining and aggregate supply.
Under the deal, Aecon will acquire the assets of LAS, including its
substantial equipment fleet, land, pits and quarries (with associated
inventories), as well as selected construction and mining contracts. As part
of the deal, Aecon will assume approximately $5 million of LAS's existing debt
(largely related to the financing of its equipment fleet) in addition to a
cash payment, subject to certain post closing adjustments, of approximately
LAS' asset base includes over 600 pieces of construction and mining
equipment as well as numerous aggregate pits and quarries. The pits and
quarries, focused primarily in the Sudbury, North Bay and Timmins regions,
contain approximately 750 million tonnes of reserves. The business is based in
Timmins and employs approximately 250 people, including about 60 full time
LAS' current management team will remain in place, including President
Denis Alarie, who will continue to manage the company. Aecon and LAS have
enjoyed a strong relationship for many years, working together on a number of
construction projects in northern Ontario. Since 2000, the two companies have
established formal joint venture partnerships to complete six significant
highway projects, including current contracts on Hwy 69 in Estaire and Hwy 11
in Burks Falls.
The acquisition gives Aecon a strong regional presence in all four major
regions of Ontario, and the addition of LAS' aggregates operation consolidates
Aecon's position as one of the four largest aggregate producers in Ontario.
"This is a significant acquisition for Aecon", said Scott Balfour,
President and CFO of Aecon Group Inc. "The northern Ontario civil construction
and mining markets are poised for strong growth, and the addition of LAS'
substantial aggregate reserves furthers one of our important strategic
"We have a long and successful history with LAS, and know them to be one
of the top companies in the industry", said Teri McKibbon, CEO of Aecon's
Infrastructure Group. "We are very proud to have the LAS team as part of the
"This acquisition is a natural evolution in the succession of our
company", said Denis Alarie, President of Leo Alarie and Sons Limited. "It
creates additional opportunities for our employees and for our company and
will add important operational synergies."
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
internationally. The Company's shares are listed for trading on the Toronto
Stock Exchange under the symbol ARE.
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
Section 3.2 "Risk Factors" in the 2007 Annual Information Form 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.
For further information:
For further information: Mitch Patten, Vice President, Corporate
Affairs, Aecon Group Inc., (416) 297-2615, firstname.lastname@example.org, www.aecon.com