Toronto, Ontario – February 3, 2020: Aecon Group Inc. (TSX: ARE) announced today that it has acquired Voltage Power, an electrical transmission and substation contractor headquartered in Winnipeg, Manitoba. The base purchase price is $30 million in cash, with additional earnout payments possible based on achieving minimum EBITDA targets over the next three years. The base purchase price implies a transaction multiple of approximately 3.75x Voltage Power’s average EBITDA over the past three years and will be fully financed using Aecon’s available cash.
A private, employee-owned company, Voltage Power brings key medium to high-voltage power transmission and distribution capabilities to Aecon. Voltage Power, with average annual revenue of approximately $60 million over the past three years has successfully completed over 20 projects in the past four years with an aggregate value of $200 million spanning Alberta, Saskatchewan, Manitoba, Ontario and Newfoundland. Key projects include Manitoba Hydro’s Keeyask 138 kV Switching Station and Bipole III 500 kV Transmission Line, Emera’s Maritime Link 230 kV Transmission Line and New Gold’s 230 kV Substation and Switching Station.
“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 Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “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.”
“This acquisition extends Aecon’s offering in our key utilities portfolio – enhancing our ability to serve clients across multiple business lines,” said Eric MacDonald, Senior Vice President, Aecon Utilities. “Voltage Power’s strong team is well-aligned with Aecon’s core values and culture. Their solid relationships with key clients and local Indigenous workforces fit well with Aecon’s collaborative approach to client and Indigenous engagement nationwide.”
“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, Voltage Power.
About Aecon
As a Canadian leader in construction and infrastructure development with global expertise, Aecon Group Inc. (TSX: ARE) strives to be the number one Canadian infrastructure company. Aecon safely, profitably and sustainably delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Conventional Industrial sectors, and provides project development, financing, investment and management services through its Concessions segment. Join our online community on Twitter, LinkedIn, Facebook and Instagram @AeconGroup.
Statement on Forward-Looking Information
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, the failure to recognize and adequately respond to climate change concerns or public and governmental expectations on climate matters, general market and industry conditions and operational and reputational risks, including large project risk and contractual factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
(416) 297-2610
aborgatti@aecon.com
Nicole Court
Senior Director, Corporate Affairs
(416) 297-2600 x3824
ncourt@aecon.com