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: 鈥淎econ鈥檚 efforts are increasingly focused on helping meet its clients鈥� sustainable infrastructure needs and harnessing the opportunities that are expected to come from the transition to a net zero economy through decarbonisation.
鈥淭his transaction is consistent with Aecon's goal of targeting prudent balance sheet leverage and liquidity and also reduces the overall capital intensity of Aecon鈥檚 business.鈥�
Aecon said that on closing the deal, it will enter into a strategic cooperation agreement with GIP for 鈥渃ertain major projects and pursuits in Ontario that leverage both Aecon鈥檚 heavy civil construction services and GIP鈥檚 roadbuilding capabilities.鈥�
The sale is expected to complete during the first half of this year.
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