Aecon Group has entered into a definitive purchase agreement with Green Infrastructure Partners to sell its Aecon Transportation East (“ATE”) roadbuilding, aggregates and materials businesses in Ontario for $235 million in cash.

ATE provides roadbuilding infrastructure solutions throughout Ontario to the provincial government, municipalities, and private clients through a workforce of approximately 1,000 employees.

In 2022, ATE’s revenue represented approximately 7% of Aecon’s consolidated revenue as part of the Construction segment.

“Aecon’s efforts are increasingly focused on helping meet its clients’ sustainable infrastructure needs and harnessing the opportunities that are expected to come from the transition to a net zero economy through decarbonization,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “This transaction is consistent with Aecon’s goal of targeting prudent balance sheet leverage and liquidity and also reduces the overall capital intensity of Aecon’s business.”

Strategic Cooperation Agreement

Upon closing of the sale, Aecon and GIP will enter into a strategic cooperation agreement for certain major projects and pursuits in Ontario that leverage both Aecon’s heavy civil construction services and GIP’s roadbuilding capabilities.