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News Release |
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Aecon Completes Alarie Acquisition
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Aecon now one of the three largest construction companies in the northern Ontario market |
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Toronto, Ontario – December 20, 2007: Aecon Group Inc. (“Aecon”) (TSX:ARE) today announced that it has completed the previously disclosed purchase of the assets of Leo Alarie and Sons Limited (“LAS”), one of the largest construction companies in northern Ontario. A private company, owned primarily by the Alarie Family, LAS is an integrated construction and materials company active throughout northern Ontario in heavy construction (highways, hydro-electric projects, sewer and water, pipelines, etc.), engineered construction (design/build projects such as bridges and mine site infrastructure requiring substantial engineering), pre-engineered buildings, contract open pit mining and aggregate supply. Under the deal, Aecon will acquire the assets of LAS, including its substantial equipment fleet, land, pits and quarries (with associated inventories), as well as selected construction and mining contracts. As part of the deal, Aecon will assume approximately $5 million of LAS’s existing debt (largely related to the financing of its equipment fleet) in addition to a cash payment, subject to certain post closing adjustments, of approximately $14.2 million. LAS’ asset base includes over 600 pieces of construction and mining equipment as well as numerous aggregate pits and quarries. The pits and quarries, focused primarily in the LAS’ current management team will remain in place, including President Denis Alarie, who will continue to manage the company. Aecon and LAS have enjoyed a strong relationship for many years, working together on a number of construction projects in northern The acquisition gives Aecon a strong regional presence in all four major regions of “This is a significant acquisition for Aecon”, said “We have a long and successful history with LAS, and know them to be one of the top companies in the industry”, said “This acquisition is a natural evolution in the succession of our company”, said Denis Alarie, President of Leo Alarie and Sons Limited. “It creates additional opportunities for our employees and for our company and will add important operational synergies.” Aecon Group Inc. is The information in this news release includes certain forward-looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties which are generally described in Section 3.2 "Risk Factors" in the 2007 Annual Information Form available on SEDAR at www.sedar.com. Although Aecon believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. --30--
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