MISSISSAUGA, ONT. — The sell-off of Carillion Canada Holdings Incorporated assets continues with the Feb. 28 announcement that EllisDon Corporation will acquire Carillion’s interests in four Ontario hospitals.
Under the transaction, EllisDon will acquire 70 per cent of the issued and outstanding shares of four health care entities, of which EllisDon already owns the remaining 30 per cent, said a media statement.
EllisDon will become the sole service provider on behalf of the Royal Ottawa Hospital, Oakville Trafalgar Memorial Hospital, William Osler Health System and Sault Area Hospital when the purchases of Carillion Services (ROH) Inc., Carillion EllisDon Services (NOH) Inc., Carillion Services (WOHC) Inc., and Carillion EllisDon Services (Sault) Inc. are confirmed.
EllisDon, through an affiliate, will also acquire 50 per cent of the issued and outstanding shares of the Healthcare Infrastructure Company of Canada (ROH) Inc. of which EllisDon’s affiliate owns the remaining 50 per cent, the statement noted.
On Feb. 5 it was announced Fairfax Financial Holdings Limited would acquire the services division of Carillion Canada.
That announcement said the services business affected by the deal includes facilities management of airports, commercial and retail properties, defense facilities, select health care facilities and services for oil, gas and mining clients, including under the Outland brand.
As with the earlier deal, the latest transaction is subject to the parties entering into a definitive purchase agreement which will contain customary closing conditions, including approval by the Ontario Superior Court of Justice in Carillion Canada’s proceedings under the Companies’ Creditors Arrangement Act (Canada) and other approvals and consents, the statement indicated.
On Jan. 15 Carillion Canada’s parent company Carillion PLC based in the U.K. announced it was going into liquidation.
“EllisDon has been paying particular attention to these hospitals which we built and provided services and equity as joint venture partners,” said Ashley Richardson, managing director of EllisDon Facilities Services Inc. “In moving to full ownership from partial ownership of these corporations, EllisDon is confident in delivering results that provide continuity of service to the hospitals, the patients they serve, and of employment for the workforces serving them, and for the debt and equity providers to these projects.”
Simon Buttery, president and CEO of Carillion Canada, said “This transaction will provide certainty and stability for the clients we work for and the customers we serve in these hospitals, as well as for our partners and other stakeholders. We are pleased to have reached an agreement with our partner, and to have made further progress with the restructuring of the Carillion assets in Canada.”