Aecon Group Inc. company constructing St Vincent modernized port is selling its road building business in Ontario to Green Infrastructure Partners Inc. (GIP) for $235-million in cash.
Aecon Transportation East (ATE), which constructs roads across Ontario for the provincial government, municipalities, and private clients, will be acquired by GIP under the terms of the deal.
Upon the transaction’s completion, Aecon promises to establish a strategic cooperation agreement with GIP. In ATE, there are around 1,000 workers.
The net revenues from the transaction, according to Aecon, would be used to reduce debt.
The transaction, according to Aecon Group CEO Jean-Louis Servranckx, lowers the total capital intensity of Aecon’s operations and is consistent with the company’s aim of prudent balance sheet leverage and liquidity.
