Aecon acquires South Rock
By Chris Sleight17 December 2008
Aecon, one of Canada's largest construction groups, has agreed to acquire privately owned construction and materials company South Rock, which is based in Medicine Hat, Alberta, Canada. South Rock has annual revenues of CA$ 150 million (US$ 123 million).
Aecon will pay US$ 35 million for South Rock and take on some US$ 9 million of its debt. The deal is due to close on January 15, and is subject to regulatory approval.
According to Aecon, the addition of South Rock will more than double the capacity of its civil construction business in Alberta. It will also boost the company's equipment fleet and add aggregate reserves along with an order backlog worth about CA$ 100 million (US$ 82 million).
Scott Balfour, president and CFO of Aecon said, "This is a very significant acquisition for Aecon. The expansion of our construction and materials capabilities in the Alberta market has been a strategic priority for us and this acquisition solidifies our competitive profile in a market with a strong demand for infrastructure investment.