Aecon acquired by CCCI

Aecon Group and CCCC International Holding Limited (CCCI) have announced they have entered into a definitive agreement under which CCCI will acquire all of the issued and outstanding common shares of Aecon for $20.37 per share in cash, representing an enterprise value of $1.51 billion.

Details of the AECON sale

• All-cash consideration of $20.37 per share; 42 per cent premium to unaffected share price
• Aecon gains access to new platforms and partnerships for continued growth in Canada and abroad; CCCI advances its global growth strategy
• New growth and employment opportunities expected as Aecon gains significant capabilities and financial strength by joining the world’s largest network of engineering and construction companies
• Aecon will retain its name, continue to be Canada-headquartered and led by its Canadian management team
• Aecon and CCCI share a strong commitment to maintaining customer service excellence and a safety-first culture
• Aecon board of directors unanimously recommends transaction to shareholders

The purchase price represents a 42 per cent premium to Aecon‘s unaffected share price on August 24 and a 9.2x EV/LTM EBITDA multiple. The board of directors of Aecon has unanimously recommended this transaction.

“We believe this is a very positive outcome for Aecon and our key stakeholders,” said Brian V. Tobin, Aecon’s chairman. “This transaction is the result of an active and diligent sale process that has enabled us to select an outstanding partner and create significant shareholder value.”

“This is an excellent fit for both of our companies,” said Mr. Lu Jianzhong, president of CCCI. “Aecon has a strong management team and a very impressive track record that have made it a leading construction company in Canada and a pioneer in public private partnerships and concession operations. It will now gain access to significant capital, complementary infrastructure expertise and an international network to support its growth ambitions.”

Lu added “The vision and leadership of John M. Beck, president and CEO, have built Aecon into the successful company it is today, a diversified business focused on innovation and customer service with a formidable management team. We will continue to rely on John’s experience and leadership as we together take Aecon to a new level.”

“This transaction creates significant and immediate value for Aecon shareholders, strengthens our competitive position in Canada and abroad with enhanced capabilities and financial resources, and provides expanded opportunities for our people,” said Beck. “We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values. I’m excited and proud to be part of this new chapter for Aecon and for Canada. And I am personally committed to working with the Aecon management team and CCCI on CEO succession planning which began last year, prior to our exploring the sale of the company.”

CCCI recognizes Aecon as a leading provider of construction services spanning the four core segments of Infrastructure, Energy, Mining, and Concessions with competitive know-how, state of the art facilities, experienced personnel and leading market positions. CCCI recognizes Aecon’s importance to Canada and is committed to ensuring that the transaction will deliver benefits to Canada, including:

• CCCI’s size and financial strength will augment Aecon’s access to capital and its ability to bid for larger and more complex projects in Canada, enhancing domestic competition for construction services, and will enable it to compete for more international projects
• CCCI will seek out areas in which Aecon could deploy its unique expertise across CCCI’s international network
• Aecon will continue to be headquartered in Canada
• Retention of Aecon’s Canada-based employees, offering opportunities for Canadians to benefit from expected future growth
• Continuity of Canadian management and ongoing adherence to Canadian standards of corporate governance
• Preservation of the iconic Aecon brand in Canada
• Aecon’s Corporate Social Responsibility and Sustainability Policy will continue, as will its support for Canadian suppliers and community organizations and its commitment to operate in a safe and responsible manner

CCCI is the overseas investment and financing arm and a wholly-owned subsidiary of China Communications Construction Company Limited (CCCC), one of the world’s largest engineering and construction groups. Its core business activities include infrastructure construction, infrastructure design and dredging.