Aecon Group Inc. agreed to purchase the convertible preferred equity investment held by funds managed by Oaktree Capital Management, L.P. in its utility infrastructure subsidiary, Aecon Utilities Group Inc. The transaction, valued at $320 million, secures Aecon's 100% interest in Aecon Utilities and implies an equity value of $1.2 billion and an enterprise value of $1.5 billion for the subsidiary. Closing is expected in the fourth quarter of 2026.

The purchase price is based on Oaktree's as-converted 27.5% ownership interest. The transaction implies a 13.0x enterprise value multiple to Aecon Utilities' trailing twelve-month acquisition-related pro forma Adjusted EBITDA to March 31, 2026. Aecon intends to fund the acquisition using existing cash resources and available credit facility capacity.

Strategic Benefits

Jean-Louis Servranckx, President and Chief Executive Officer of Aecon, stated that the transaction accelerates growth in target markets and enhances the company's ability to expand into regions with attractive project pipelines under a One Aecon approach. The move is expected to be accretive to adjusted earnings per share and simplifies Aecon's capital structure.

Aecon Utilities operates across electrical, communications, and pipeline distribution end-markets. Since Oaktree's investment in Q4 2023, the subsidiary has diversified, with electrical end-markets representing approximately 49% of trailing twelve-month acquisition-related pro forma revenue to March 31, 2026. The U.S. presence accounts for approximately 26% of the same revenue metric.

Financial Metrics

The following table summarizes Aecon Utilities' reported and acquisition-related pro forma financial information for the trailing twelve months ended March 31, 2026:

Transaction Details

CIBC Capital Markets served as financial advisor to Aecon, while Davies Ward Phillips & Vineberg LLP acted as legal counsel. CIBC Capital Markets provided an opinion to the Board of Directors that the consideration to be paid was fair from a financial point of view. Additional terms will be detailed in a material change report available on SEDAR+.

The Canadian Investor Relations Institute (CIRI) has named Adam Borgatti, CPIR, as the 38th recipient of the Award for Excellence in Investor Relations. The award recognizes individuals who have made an exceptional contribution to the investor relations profession and the Institute. Borgatti was honoured at CIRI’s 39th Annual Conference in Saint-Sauveur, Quebec, on June 18, 2026.

Adam Borgatti serves as Senior Vice President, Corporate Development and Investor Relations at Aecon Group Inc. (TSX: ARE). Since assuming the investor relations portfolio at Aecon in 2015, he has built an IR program that has garnered 12 IR Magazine / IR Impact Awards – Canada. These awards span categories including Best in Overall IR, Best IR Officer, Best ESG Reporting, and Best Social Media & Video. In 2024, Borgatti was inducted into the IR Impact Hall of Fame and was recognized as a TopGun IR Executive by Brendan Wood International in 2017, 2022, and 2023.

Borgatti has contributed significantly to CIRI since achieving the Certified Professional in Investor Relations (CPIR) designation in 2017. He served as a contributing editor to CIRI’s Guide to Developing an Investor Relations Program and has been a regular guest speaker at events. His leadership roles within CIRI included membership on the National Board from 2019 to 2026, where he held positions as Treasurer, Audit Committee Chair, Board Chair, and Past Chair.

Nathalie Megann, President and Chief Executive Officer of CIRI, congratulated Borgatti on the award. She highlighted his commitment to elevating the IR profession and strengthening relationships within the capital markets community. Borgatti expressed gratitude for the recognition, attributing the success of Aecon's IR program to the exceptional team at the company and reaffirming his commitment to fostering transparency and meaningful dialogue.

Key Career Milestones