Aecon sells Ontario roadbuilding business

Infrastructure developer Aecon has completed the sale of its Aecon Transportation East (ATE) roadbuilding, aggregates and materials businesses in Ontario.

In a deal worth C$235m in cash, the firm has sold the organizations to Green Infrastructure Partners (GIP), one of Canada’s largest and most diversified infrastructure companies.

Aecon announced in March that it had entered into a definitive agreement with GIP to sell its ATE businesses, with president and chief executive Jean-Louis Servranckx stating: “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.”

In January this year, Aecon teamed up with GE Hitachi and SNC-Lavalin to establish a partnership agreement with Crown corporation Ontario Power Generation (OPG), to deliver North America’s first grid-scale small modular reactor.