Aecon Group Inc. to Acquire Full Ownership of Aecon Utilities Group from Oaktree Capital

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Aecon Group Inc. has announced a major acquisition of Oaktree's stake in Aecon Utilities Group, a move expected to enhance its operational capabilities and financial performance.

On June 25, 2026, Aecon Group Inc. (TSX: ARE), a prominent player in the North American construction and infrastructure sector, revealed its agreement to acquire the convertible preferred equity investment held by Oaktree Capital Management, L.P. in its utility infrastructure subsidiary, Aecon Utilities Group Inc. The transaction, valued at $320 million, is anticipated to close in the fourth quarter of 2026. This acquisition will enable Aecon to secure a complete 100% ownership in Aecon Utilities by purchasing Oaktree’s 27.5% ownership stake, which translates to an equity value of $1.2 billion for the subsidiary.
The implications of this acquisition are significant for Aecon, as it positions the company to fully capitalize on the economic benefits associated with Aecon Utilities’ operations in the electrical, communications, and pipeline distribution sectors. By integrating Aecon Utilities into its overall platform, Aecon aims to enhance its service offerings to power and utility clients, promoting a more comprehensive solution delivery model under the One Aecon strategy.
The financial aspects of the deal indicate a robust enterprise value of $1.5 billion for Aecon Utilities, which reflects a 13.0x multiple of the company's trailing twelve-month acquisition-related pro forma Adjusted EBITDA as of March 31, 2026. Aecon management anticipates that the acquisition will positively impact adjusted earnings per share and will be financed through existing cash resources and available credit facilities.
Aecon Utilities has emerged as a leading provider of utility infrastructure solutions in North America, with a diversified portfolio that includes significant exposure to the electrical market, accounting for approximately 49% of its revenue, and a growing footprint in the U.S. market, which comprises about 26% of its revenue. This growth trajectory is underpinned by long-term contracts and repeatable work programs facilitated by Master Service Agreements, positioning Aecon Utilities to benefit from increasing demand in energy infrastructure and connectivity in both Canada and the U.S.
Jean-Louis Servranckx, President & CEO of Aecon, emphasized the strategic importance of this acquisition, stating that it accelerates Aecon's growth in key markets and enhances its integrated service delivery. The removal of Oaktree’s Preferred Shares from Aecon’s capital structure is expected to simplify financial reporting and optimize financial capacity for future growth initiatives.
Eric MacDonald, Executive Vice President of Aecon Utilities, noted the fruitful partnership with Oaktree, highlighting the growth achieved during their collaboration. Oaktree's Managing Director, Jimmy Lee, expressed pride in supporting Aecon Utilities’ strategic plans, affirming the company’s strong competitive position and favorable market dynamics.
The transaction is projected to close in the fourth quarter of 2026, and further details will be disclosed in a material change report accessible through Aecon’s profile on SEDAR+. CIBC Capital Markets is serving as the financial advisor for Aecon, while Davies Ward Phillips & Vineberg LLP is providing legal counsel. The Board of Directors has received an opinion from CIBC Capital Markets affirming the fairness of the transaction from a financial perspective.
In conclusion, this acquisition represents a pivotal move for Aecon Group Inc., reinforcing its position in the utility infrastructure sector and enhancing its ability to deliver comprehensive solutions to clients across North America.

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