Aecon Group Inc. says it has completed the previously disclosed purchase of the assets of Leo Alarie and Sons Ltd., one of the largest construction companies in northern Ontario. Under the deal, Aecon will acquire the assets of LAS, including its equipment fleet, land, pits and quarries (with associated inventories), as well as selected construction and mining contracts.
Acquisitions
Acquisition follows joint-venture partnerships on northern Ontario highway projects
TORONTO
Aecon Group Inc. says it has completed the previously disclosed purchase of the assets of Leo Alarie and Sons Ltd., 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 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.
LAS’s asset base includes over 600 pieces of construction and mining equipment as well as numerous aggregate pits and quarries. The pits and quarries, focused primarily in the Sudbury, North Bay and Timmins regions, contain approximately 750 million tonnes of reserves. The business is based in Timmins and employs approximately 250 people, including about 60 full-time salaried staff.
LAS’ current management team will remain in place, including president Denis Alarie, who will continue to manage the company. Aecon and LAS have enjoyed a strong relationship for many years, working together on a number of construction projects in northern Ontario, the companies said.
Since 2000, the two companies have established formal joint-venture partnerships to complete six significant highway projects, including current contracts on Hwy 69 in Estaire, Ont. and Hwy 11 in Burks Falls, Ont. Aecon said, the acquisition gives it a strong regional presence in all four major regions of Ontario, and the addition of LAS’s aggregates operation consolidates Aecon’s position as one of the four largest aggregate producers in Ontario.
“This is a significant acquisition for Aecon”, said Scott Balfour, president and CFO of Aecon Group Inc. “The Northern Ontario civil construction and mining markets are poised for strong growth, and the addition of LAS’s substantial aggregate reserves furthers one of our important strategic objectives.”
“We have a long and successful history with LAS, and know them to be one of the top companies in the industry”, said Teri McKibbon, 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. “It creates additional opportunities for our employees and for our company and will add important operational synergies.”
DCN News Services
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