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.
“We have a long and successful history with LAS, and know them to be one of the top companies in the industry”, said , CEO of Aecon’s Infrastructure Group. “We are very proud to have the LAS team as part of the Aecon family”.
“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 's largest publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout and internationally. The Company's shares are listed for trading on the Toronto Stock Exchange under the symbol ARE.