TORONTO 鈥� Aecon Group Inc. has signed a deal to sell its road building business in Ontario to Green Infrastructure Partners Inc. (GIP) for $235 million in cash.
Under the agreement, GIP will acquire Aecon Transportation East (ATE), which builds roads throughout Ontario for the provincial government, municipalities and private clients.
Aecon says it will sign a strategic co-operation agreement with GIP upon the closing of the deal
ATE has a workforce of about 1,000 employees.
Aecon says it plans to use the net proceeds from the sale to pay down debt.
Aecon Group CEO Jean-Louis Servranckx says the sale is consistent with the company's goal of targeting prudent balance sheet leverage and liquidity and also reduces the overall capital intensity of Aecon's business.
This report by The Canadian Press was first published March 1, 2023.
Companies in this story: (TSX:ARE)
The Canadian Press
