Aecon Group (ARE.TO) on Thursday said agreed to acquire the convertible preferred equity investment held by funds managed by Oaktree Capital Management in its Aecon Utilities subsidiary for C$320 million, increasing its ownership ahead of an expected fourth-quarter closing.
The purchase price is based on Oaktree's as-converted 27.5% ownership interest in Aecon Utilities and values the business at about C$1.2 billion on an equity basis and C$1.5 billion on an enterprise value basis.
The transaction implies a 13.0-times enterprise value multiple on Aecon Utilities' trailing 12-month acquisition-related pro forma adjusted EBITDA to March 31, 2026.
The deal positions Aecon to capture the full economic benefit associated with Aecon Utilities' electrical, communications, and pipeline distribution end-markets, the company said.
Aecon shares closed down C$0.33, 0.8%, to C$43.76 on the Toronto Stock Exchange.