Aecon Group has sold Aecon Transportation East (ATE) roadbuilding services, aggregates and other materials supply businesses to Green Infrastructure Partners for US$173 million.
The former Aecon division’s main business is maintaining infrastructure in the province of Ontario, of which Toronto is the capital and the city where both ATE and GIP are based.
Green Infrastructure Partners is the renamed GFL Infrastructure Group, which was spun off from GFL Environmental. GFL, headquartered in Vaughan, Ontario, is the fourth largest diversified environmental services company in North America, providing non-hazardous solid waste management, soil remediation and liquid waste management services throughout Canada and in more than half of the US states. GFL has a workforce of more than 18,000.
Soon after Green Infrastructure Partners was formed it acquired Coco Paving and the company’s affiliates. GIP provides of civil infrastructure services with 33 asphalt plants, eight concrete plants, access to over 250 aggregate sites, an asphalt cement terminal in eastern Ontario and more than 3,000 employees across its operations.
Patrick Dovigi, GIP's executive chairman, said the acquisition broadens their offering to support public services in the provinces of Ontario, British Columbia, Manitoba, Saskatchewan and Quebec. "We saw a tremendous opportunity to enhance the scale and service offerings around our vertically integrated Coco Paving platform, with the self-perform capabilities initially added from GFL's infrastructure division and to accelerate our growth through acquisition, further consolidating GIP's position as one of Canada's premier suppliers of critical infrastructure maintenance services.”
The deal adds eight aggregate quarries to supply both internally and external customers, eight asphalt plants and around 1,000 employees.
Over the past 20 years, GIP – as the former Coco Paving – has performed more than US$370 million worth of work for the Ontario Ministry of Transportation along the Highway 401 freeway corridor from Windsor to London.
Aecon Group is a national Canadian construction and infrastructure development company with global experience. It delivers integrated solutions to private and public-sector clients through its construction segment in the civil, urban transportation, nuclear, utility and industrial sectors and provides project development, financing, investment and management services.
Last month Aecon was selected by Alberta Transportation and Economic Corridors to deliver the Deerfoot Trail Improvements project in the city of Calgary in the western province of Alberta. The agreement involves two contracts with an aggregate value of US$453 million.
Work on the Deerfoot Trail, Alberta’s busiest highway, includes construction of additional lanes, seven new bridges and improvements to ramps and interchanges. Aecon additional work within the contracts includes improvements at Beddington Trail Northwest and 11th Street Northeast, including adding an additional lane in the north and southbound directions, and constructing a ramp to connect 11th Street with Deerfoot Trail North and Beddington Trail.
Aecon Concessions is part of the joint venture of Bridging North America (BNA), that includes ACS Infrastructure Canada and Fluor Canada which is constructing the Gordie Howe International Bridge. The bridge is crossing the Detroit River from Windsor in Ontario to Detroit in the US state of Michigan.