AECON TO SELL MINING DIVISION
Aecon Group Inc. has signed a deal to sell its contract mining business to North American Construction Group Inc. for $199.1 million in cash. The business provides overburden removal and environmental reclamation services, mainly in the Alberta oilsands. NACG paid Aecon a $10-million deposit, while the balance will be paid in four instalments with the first payment of $153.6 million due when the deal closes. The other three payments of $11.8 million each will be paid six, 12 and 18 months following closing. The sale is subject to purchase price adjustments and closing conditions. Aecon says it will continue to operate the business with no disruption, pending the close of the transaction. “The capital intensive contract mining business is outside Aecon’s core construction activities and focus,” explained Jean-Louis Servranckx, president and CEO of Aecon.