Aecon to acquire Leo Alarie and Sons Limited



    - Would make Aecon one of the three largest construction companies
    in the northern Ontario market -

    - Acquisition expected to be accretive to earnings in 2008 -

    TORONTO, Nov. 5 /CNW/ - Aecon Group Inc. ("Aecon") (TSX:ARE) today
announced that it has signed a letter of intent regarding the 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 letter of intent, which is subject to a number of conditions
including completion of satisfactory due diligence, Aecon would acquire the
assets of LAS including its substantial equipment fleet (and associated debt),
land, pits and quarries (with associated inventories), as well as selected
construction and mining contracts. The purchase price is expected to be
approximately $19 million and the transaction is targeted to close in late
December.
    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
salaried staff.
    LAS' current management team would remain in place, including President
Denis Alarie, who would 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 would give Aecon a strong regional presence in all four
major regions of Ontario, and the addition of LAS' aggregates operation would
consolidate Aecon's position as one of the four largest aggregate producers in
Ontario.
    "This would be a significant acquisition for Aecon", said Scott Balfour,
President and CFO of Aecon Group Inc. "Adding one of the top companies in the
growing northern Ontario civil construction and mining markets would be a
significant boost to our growth plans in the province, and the addition of
LAS' substantial aggregate reserves furthers one of our important strategic
objectives."
    "We have a long and successful history with LAS and we would be very
proud to be the successor to the Alarie family in this business", said Teri
McKibbon, CEO of Aecon's Infrastructure Group. "We know them to be one of the
top companies in the industry."
    "The acquisition by Aecon of LAS would be a natural evolution in the
succession of our company. We have worked closely in partnership with Aecon
for the past eight years and our respective cultures are aligned", said Denis
Alarie, President of Leo Alarie and Sons Limited. "We look forward to the
continuation of this partnership and to being a part of a larger construction
company. This will create 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.

    %SEDAR: 00004778EF




For further information:

For further information: Mitch Patten, Vice President, Corporate
Affairs, Aecon Group Inc., (416) 297-2615, aecon@aecon.com; www.aecon.com


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