Aecon becomes main subcontractor for communication infrastructure --
Toronto, Ontario – August 5, 2005: Aecon Group Inc. (TSX: ARE) today announced that its Civil and Utilities division has successfully negotiated a series of contracts with Expertech Network Installation Inc. These new renewable contracts take effect September 2005.
The new contracts will add the markets of London, Kitchener-Waterloo, Guelph, Owen Sound and Ottawa to Aecon's existing territory, meaning that Aecon will now provide approximately 95% of Expertech's subcontracted construction requirements across Ontario. It is expected that the expanded arrangement could increase Aecon's work for Expertech by as much as 50% and bring annual billings to over $60 million.
The deal expands Aecon's industry lead in the construction of communication infrastructure and creates a strategic partnership between Aecon and Expertech for execution of Expertech's construction requirements in the region.
Expertech is Canada's leading network infrastructure services provider with over 2,000 professional planners, engineers, network consultants and installation technicians across North America.
This partnership will provide numerous synergies between the two companies including improved operational efficiency, increased purchasing power, streamlined use of technology and sharing of facilities and assets.
"One of our strategic priorities has been to expand our partnerships with key clients like Expertech while pursuing growth in our key markets," said Scott Balfour, Aecon CFO, Executive VP, and CEO of Infrastructure Construction. "This is an important step toward that goal, and creatively helps both partners achieve important objectives."
"Clearly our safety record, quality record, execution capabilities and experience with partnerships have been major contributors to this deal," said Teri McKibbon, Senior VP and General Manager, Aecon Civil and Utilities. "It is an important step for us and we are delighted to expand our relationship with Expertech."
Aecon Group Inc. is Canada's largest publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and internationally.