ST. GEORGES, QUE. — The Canadian assets of Quebec-based construction company Canam Group has been bought by three Quebec partners in addition to other Canam assets in the United States and overseas.
Placements CMI, Caisse de depot et placement du Quebec (CDPQ) and Fonds de solidarite FTQ announced the purchase agreement with American Industrial Partners (AIP) Jan 20.
The transaction is expected to close in the coming weeks and will total more than $840 million, but the transaction is still subject to regulatory approvals.
Under the terms of the agreement, the new company will be owned equally by the three Quebec investors.
“With the support of CDPQ and the Fonds, Canam will continue to grow with the same standards of quality and reliability that have made its reputation,” said Marcel Dutil, chairman of the board of Canam Group. “We would like to thank AIP for its support and look forward to continuing our partnership in the United States.”
This transaction will repatriate control of the company to Quebec, stated Charles Emond, an executive vice-president at CDPQ.
“We are delighted to continue working with the Dutil family and support Groupe Canam, a partner of over 25 years,” Emond said in the statement.
The new company will bring together the Canam Buildings plants located in St. Gedeon-de-Beauce and Boucherville in Quebec, and in Mississauga and Calgary, and the Canam Bridges plants located in Quebec City, Laval and Shawinigan (TecFab).
The engineering and drafting offices in Brasov, Romania and Kolkata, India, Stonebridge’s erection operations in South Plainfield, N.J, as well as Canam Bridges US’s assets located in Claremont, N.H. will also be part of the new company.
The operations of U.S. subsidiaries Canam Steel Corporation and FabSouth are not affected by the transaction and remain jointly owned by AIP and the Quebec investor group.
Canam Group operates 25 plants in Canada and the United States as well as the engineering offices in Romania and India.
The firm has 4,900 employees including just under 2,000 in Canada.