GFL subsidiary acquires Ontario roadbuilding business

Aecon Group has sold its Aecon Transportation East (ATE) roadbuilding services, aggregates and other materials supply businesses to Green Infrastructure Partners (GIP) for $173 million.

The former Aecon division’s main business is maintaining infrastructure in the province of Ontario, where both ATE and GIP are based.

As reported by World Highways, GIP is the renamed GFL Infrastructure Group, which was spun off from Vaughn, Canada-based GFL Environmental. GFL is the fourth-largest diversified environmental services company in North America, providing nonhazardous solid waste management, soil remediation and liquid waste management services throughout Canada and in more than half of the U.S.

Soon after GIP was formed it acquired Coco Paving and the company’s affiliates. GIP provides civil infrastructure services with 33 asphalt plants, eight concrete plants, access to over 250 aggregate sites, an asphalt cement terminal in eastern Ontario and more than 3,000 employees across its operations.

“We are excited to add ATE's vertically integrated roadbuilding solutions business in Ontario to GIP’s existing platform, further solidifying the breadth of our services to support public infrastructure from our operations in Ontario, British Columbia, Manitoba, Saskatchewan and Quebec,” says Patrick Dovigi, GIP’s executive chair in a news release announcing the acquisition.

“We saw a tremendous opportunity to enhance the scale and service offerings around our vertically integrated Coco Paving platform, with the self-perform capabilities initially added from GFL’s infrastructure division and to accelerate our growth through acquisition, further consolidating GIP’s position as one of Canada’s premier suppliers of critical infrastructure maintenance services. This acquisition is one of those great opportunities.”

The deal adds eight aggregate quarries to supply both internal and external customers, eight asphalt plants and around 1,000 employees, Dovigi says.

Over the past 20 years, GIP has performed more than $370 million worth of work for the Ontario Ministry of Transportation along the Highway 401 freeway corridor from Windsor to London.

Aecon Group is a national Canadian construction and infrastructure development company with global experience. It delivers integrated solutions to private and public-sector clients through its construction segment in the civil, urban transportation, nuclear, utility and industrial sectors and provides project development, financing, investment and management services.