The purchase price represents a 42 per cent premium to Aecon’s unaffected share price on August 24, 2017 and a 9.2x EV/LTM EBITDA multiple. The board of directors of Aecon has unanimously recommended this transaction.
“We believe this is a very positive outcome for Aecon and our key stakeholders,” said The Hon. Brian V. Tobin, P.C., O.C., Aecon’s Chairman. “This transaction is the result of an active and diligent sale process that has enabled us to select an outstanding partner and create significant shareholder value.”
“This is an excellent fit for both of our companies,” said Mr. Lu Jianzhong, President of CCCI. “Aecon has a strong management team and a very impressive track record that have made it a leading construction company in Canada and a pioneer in public private partnerships and concession operations. It will now gain access to significant capital, complementary infrastructure expertise and an international network to support its growth ambitions.”
Mr. Lu said: “The vision and leadership of John M. Beck, President and CEO, have built Aecon into the successful company it is today, a diversified business focused on innovation and customer service with a formidable management team. We will continue to rely on John’s experience and leadership as we together take Aecon to a new level.”
“This transaction creates significant and immediate value for Aecon shareholders, strengthens our competitive position in Canada and abroad with enhanced capabilities and financial resources, and provides expanded opportunities for our people,” said Mr. Beck. “We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values. I’m excited and proud to be part of this new chapter for Aecon and for Canada. And I am personally committed to working with the Aecon management team and CCCI on CEO succession planning which began last year, prior to our exploring the sale of the company.”
Benefits to Canada
CCCI recognizes Aecon as a leading provider of construction services spanning the four core segments of Infrastructure, Energy, Mining, and Concessions with competitive know-how, state of the art facilities, experienced personnel and leading market positions. CCCI recognizes Aecon’s importance to Canada and is committed to ensuring that the transaction will deliver benefits to Canada, including:
- CCCI’s size and financial strength will augment Aecon’s access to capital and its ability to bid for larger and more complex projects in Canada, enhancing domestic competition for construction services, and will enable it to compete for more international projects
- CCCI will seek out areas in which Aecon could deploy its unique expertise across CCCI’s international network
- Aecon will continue to be headquartered in Canada
- Retention of Aecon’s Canada-based employees, offering opportunities for Canadians to benefit from expected future growth
- Continuity of Canadian management and ongoing adherence to Canadian standards of corporate governance
- Preservation of the iconic Aecon brand in Canada
- Aecon’s Corporate Social Responsibility and Sustainability Policy will continue, as will its support for Canadian suppliers and community organizations and its commitment to operate in a safe and responsible manner
CCCI has seen considerable growth in recent years, including through its successful 2015 acquisition of John Holland, one of Australia’s largest engineering and construction companies. Since the acquisition, John Holland has continued to operate under the same name with an Australian management team, has experienced significant business growth in Australia and expanded overseas. In 2010, CCCI acquired Friede & Goldman, a world leader and innovator in offshore architecture and engineering based in Houston, Texas. After its acquisition by CCCI, Friede & Goldman has seen its revenues increase five-fold.
For more information