- Aecon Group (ARE) announces acquisition of electrical transmission and substation contractor, Voltage Power
- Base price for the acquisition is $30 million, with possible additional payments dependent on EBIDTA targets
- Voltage Power has completed 20 projects over the last four years, with a total value of $200 million
- Aecon shares are currently up 1.1% to $17.40, with a market cap of $1.06 billion
Construction and infrastructure development firm, Aecon Group (ARE), has announced the acquisition of Manitoba-based Voltage Power.
Voltage Power, an employee-owned company, brings medium to high-voltage power transmission and distribution capabilities to Aecon, with average annual revenue of $60 million over the last three years.
The company has completed 20 projects, with a total value of $200 million, over the last four years in Alberta, Saskatchewan, Manitoba, Ontario and Newfoundland.
“The added ability to self-perform medium to high-voltage transmission and distribution work complements our existing core utility capabilities and further positions Aecon as a leading player in executing the strong pipeline of utility infrastructure opportunities across Canada,” said President and CEO of Aecon Group, Jean-Louis Servranckx.
“Voltage Power is the third strategic, tuck-in acquisition Aecon has made over the past 18 months, extending our integrated, self-perform capabilities and, along with the divestiture of Aecon’s Contract Mining business in 2018, reflects Aecon’s focus on core clients and end markets in our drive to be the number one Canadian infrastructure company.”
Aecon will pay a base price of $30 million for the acquisition, paid with cash on hand, with additional earnout payments possible on the achievement of minimum EBIDTA targets over the coming three years.
“Becoming a part of Aecon’s organization will strengthen our ability to bid on and successfully secure larger projects, while further expanding our offering within primary markets and creating opportunities in new markets,” said Jody Rideout, Vice President and Managing Director of Voltage Power.
Aecon shares are currently up 1.1% to $17.40, with a market cap of $1.06 billion.