Aecon Group Inc. and CCCC International Holding Limited (CCCI) have entered into a definitive agreement under which CCCI will acquire all of the issued and outstanding common shares of Aecon for CAD20.37 (US$15.9) per share in cash, representing an enterprise value of CAD1.51 billion (US$1.18 billion).
The purchase price represents a 42 per cent premium to Aecon’s unaffected share price on August 24, 2017 and a 9.2x EV/LTM EBITDA multiple. The board of directors of Aecon has unanimously recommended this transaction.
The Hon. Brian V. Tobin, P.C., O.C., Aecon’s Chairman, said:
“We believe this is a very positive outcome for Aecon and our key stakeholders. This transaction is the result of an active and diligent sale process that has enabled us to select an outstanding partner and create significant shareholder value.”
Mr. Lu Jianzhong, President of CCCI, commented:
“This is an excellent fit for both of our companies. Aecon has a strong management team and a very impressive track record that have made it a leading construction company in Canada and a pioneer in public private partnerships and concession operations. It will now gain access to significant capital, complementary infrastructure expertise and an international network to support its growth ambitions.”
John M. Beck, Aecon's President and CEO, added:
“This transaction creates significant and immediate value for Aecon shareholders, strengthens our competitive position in Canada and abroad with enhanced capabilities and financial resources, and provides expanded opportunities for our people. We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values. I’m excited and proud to be part of this new chapter for Aecon and for Canada. And I am personally committed to working with the Aecon management team and CCCI on CEO succession planning which began last year, prior to our exploring the sale of the company.”