North American Construction Group Inc. (NACG) Aecon Group Inc. has closed the definitive asset purchase agreement to acquire substantially all of the assets related to Aecon’s Contract Mining business for $199.1 million in cash, subject to customary closing adjustments.
The closing is consistent with the previous announcement issued on October 3, 2018, and is effective November 23, 2018.
The $300mn credit agreement provided to NACG was supplied by a banking syndicate led by National Bank Financial, and more than doubled NACG’s borrowing capacity.
Jason Veenstra, NACG chief financial officer said: “The acquisition of the heavy equipment fleet of Aecon is an exciting milestone event for NACG and we were pleased to work with our supportive syndicate members to finance this important opportunity.”
Aecon Group Inc. is a Canadian leader and ‘partner-of-choice’ in construction and infrastructure development and provides integrated turnkey services to private and public-sector clients in the Infrastructure and Industrial sectors, and provides project management, financing and development services through its Concessions segment.