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Aecon announces sale of Innovative Steam Technologies

Apr 13, 2015

Toronto, ON – April 13, 2015: Aecon Group Inc. (TSX: ARE) announced today that it has completed the sale of its wholly-owned subsidiary Innovative Steam Technologies (IST) to Fulcrum Capital Partners.  Gross cash proceeds of the sale will be approximately $35 million, with additional proceeds over the following two years contingent on IST achieving certain earn-out conditions based on performance.

IST designs, engineers, manufactures and installs Once Through Steam Generators (OTSGs) for both the power generation and enhanced oil recovery industries. 

“As an international manufacturing business, IST is outside of Aecon’s core business of construction and infrastructure development. The proceeds from the sale of IST further strengthen Aecon’s balance sheet and will support Aecon’s focused strategy as a provider of turnkey services for our clients,” says Teri McKibbon, President and Chief Executive Officer, Aecon Group Inc. “We thank IST’s team for all of their hard work and wish them continued success.”

GMP Securities L.P. acted as exclusive financial advisor to Aecon with respect to the transaction. 

Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients. Aecon is pleased to be consistently recognized as one of the Best Employers in Canada.

Fulcrum Capital Partners manages over C$675 million of capital through three private equity funds and a portfolio of mezzanine investments. Fulcrum Capital's investments typically support management buyouts, acquisitions, going private transactions, leveraged buyouts, corporate growth and recapitalizations.