Canadian financial company Fairfax has agreed to acquire some of the Canadian assets of bankrupt construction giant Carillion.
Having initially collapsed on 15 January, Carillion put the jobs of its 23,000 employees in jeopardy, with 6,000 of these based in Canada.
However, with Fairfax having now agreed to a partial acquisition of these assets, approximately three quarters of Carillion's Canadian employees will retain their jobs.
“We are delighted that more than 4,500 members of our team will be joining the Fairfax family,” said Simon Buttery, President and CEO, Carillion Canada. “This transaction will provide certainty and stability for the clients we work for and the customers we serve, and a strong platform for the continued growth of the business.”
Fairfax will take on the services business of Carillion Canada, a unit that undertakes the facility management of airports, commercial and retail properties, and defence, healthcare and other facilities.
“We are excited to have the services business of Carillion Canada join the Fairfax group,” said Prem Watsa, Chairman and CEO of Fairfax. “The services business of Carillion Canada has an excellent long-term track record and we look forward to working with this team in growing their business over the long-term.”
Former Governor General of Canada, David Johnstone, and former Secretary to the Governor General of Canada, Stephen Wallace, will be appointed to the Board of Directors by Fairfax upon the closing of the acquisition of the companies.