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Market: TSX
Sector: Building Material & Fixtures
EPIC: ARE
Latest Price: 11.48  (0.79% Ascending)
52-week High: 11.65
52-week Low: 7.05
Market Cap: 646.85M
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Aecon Group
www.aecon.com/Home.aspx

Aecon is Canada's largest publicly traded construction and infrastructure development company.

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Aecon completes $180m Cow Harbour asset purchase to create Aecon Mining

27th Aug 2010, 1:51 pm
Aecon completes $180m Cow Harbour asset purchase to create Aecon Mining

Aecon Group (TSX:ARE) has completed the $180 million purchase of Fort McMurray-based Cow Harbour Construction's assets and will be retaining nearly all of Cow Harbour's 300 employees in a new division to be called Aecon Mining - becoming one of the largest mining and land reclamation contractors in the oil sands.

Aecon Mining will operate within Aecon's Infrastructure and is expected to complement Aecon Lockerbie's position as a heavy industrial contractor in the oil sands, the company said.

Under the agreement, Aecon has acquired all of Cow Harbour's capital assets in Alberta, including its fleet of more than 500 pieces of mining equipment, as well as all of Cow Harbour's real property, inventory, contracts, leases, licenses, intellectual property and other assets.

Aecon has paid $60 million on closing the deal, and will pay a further $120 million within 90 days.

A private company founded in 1987, Cow Harbour had grown into one of the largest mining and land reclamation contractors in the oil sands, with more than 800 employees and revenues of $230 million, before it ran into difficulties when a number of operational issues emerged. The company filed for CCAA protection from its creditors in April of this year.

Combined with the resources of Aecon subsidiaries Alarie Construction and Lockerbie & Hole Eastern, the acquisition enhances Aecon's ability to service the mining needs of clients across Canada, it said.

"The oil sands have long been a strategic priority for Aecon, and we are excited about expanding our capabilities through this new business," said president Scott Balfour.

"The combination of Aecon's financial strength and management discipline, with Cow Harbour's first rate employee base and equipment fleet, positions us well for expanded opportunities in a market that we believe will see strength for many years to come."

In addition, the acquisition will allow Aecon to respond to the growing number of contract mining opportunities across the country, as demand for Canada`s resource commodities continues to increase, said CEO of Aecon`s infrastructure group Teri McKibbon.

Aecon Group is Canada's largest, publicly-traded construction and infrastructure development company. The company and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally.

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