Aecon

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Aecon Group Inc.
Public
Traded asTSXARE
IndustryConstruction, Infrastructure Development,
Founded1877
Hamilton, Ontario
Headquarters,
Key people

Jean-Louis Servranckx President and CEO
John Beck Executive Chairman
David Smales CFO
Yonni Fushman Executive Vice President, Chief Legal Officer and Secretary
ProductsAsphalt
Number of employees
12,000+
DivisionsAecon Infrastructure
Aecon Industrial
Aecon Concessions
WebsiteAecon Group

Aecon Group Inc. is a construction company in Canada, providing a services to private and public sector clients across its three core segments of Infrastructure, Industrial, and Concessions.

Aecon produces construction materials including asphalt and aggregate materials,[1] and pre-construction and pre-fabrication materials developed in eight company-owned fabrication facilities across Canada.[2]

Aecon has been named one of Canada's Best Employers every year since 2007[3] and in 2013 was named a Top Employer by the Globe and Mail.[4]

The Canadian Construction Associated awarded Aecon the National Safety Award in 2012.[5]

Aecon has been involved in the building of some of Canada's landmarks, including the CN Tower, St. Lawrence Seaway, Highway 407 Express Toll Route, Vancouver Skytrain, and the Montreal-Trudeau International Airport.[6]

History[edit]

Aecon's history began in 1877, when Scottish immigrant Adam Clark started a plumbing and gas fitting business in Hamilton, Ontario. Aecon's predecessor companies include The Foundation Company of Canada, Jackson Lewis, Lockerbie and Hole, Banister Pipelines, Nicholls-Radtke, Pitts Engineering Construction, and Armbro Construction.[7]

As a group, Aecon's origins go back to 1957 to Prefac Concrete of Montreal, a company started by John M. Beck and his parents.

In 2010, Aecon acquired over 500 physical pieces of mining equipment and assets previously owned by Cow Harbour Construction, a large mining and land reclamation contractor located in Alberta's oil sands.[8]

In October 2017, Aecon and CCCC International Holding Limited (CCCI) announced that they entered into a definitive agreement under which CCCI would acquire all of the issued and outstanding common shares of Aecon for $20.37 per share in cash, representing an enterprise value of $1.51 billion.

In May 2018, the federal government of Canada blocked the sale, citing national security. [9]

In November 2018, Aecon announced the closing of a definitive asset purchase agreement to sell substantially all of the assets related to its Contract Mining business to North American Construction Group Inc. for $199.1 million in cash.[10]

Operations[edit]

In 2013, Aecon reorganized its operating structure into three core segments.[11]

Aecon Infrastructure is responsible for the design and construction of large transportation projects, including airport terminals, highways, hydroelectric dams, subway tunnels and utility corridors. The Infrastructure segment represented 41% of 2012 Revenue.[12]

Aecon Industrial covers a broad range of services and solutions to numerous projects, from new and existing mines to hydroelectric facilities, natural gas power plants, oil and gas facilities, cogeneration plants, and nuclear plants.[13]

Aecon Concessions specializes in the development of domestic and international Public-Private Partnership (P3) projects as well as other infrastructure development projects requiring private finance solutions.[14] The Concessions segment represented 1% of 2012 Revenue.[15]

Subsidiaries[edit]

Aecon Infrastructure: ACML Materials, Aecon Buildings – Atlantic, Aecon Buildings – Montreal, Aecon Buildings – Ontario, Aecon Buildings – Seattle, Aecon Buildings – Facilities Management, Aecon Constructors, Aecon Construction and Materials Limited (ACML), Aecon Construction Management Inc. (ACMI), Aecon Infrastructure – Quebec, Aecon Materials Engineering (AME), Karson, Lockerbie & Hole Contracting, Miwel Construction, South Rock Ltd., Yellowline Asphalt Products Ltd.

Aecon Energy: Aecon Atlantic Industrial Inc., Aecon Industrial – Central Canada, Aecon Industrial – Western Canada, Aecon Utilities, Aecon Utility Engineering., Bremar, QX, Tristar, Can Atom


Challenges[edit]

The company has faced challenges, however. In 2017, Aecon Construction and Materials Ltd was found in violation of the Ontario Water Resources Act relating to a construction contract in northern Ontario in 2013.[16] Prior to this, Aecon was fined $225,000 (CAD) in 2011 after being judged liable for a 2008 natural gas explosion that killed a homeowner in an Ontario town.[17] In 2005, they faced a $300,000 (CAD) fine for an earlier gas explosion at a job site in Windsor, Ontario that killed two employees.[18] The company has been accused of misrepresenting the severity of workplace injuries, although in this they were not alone among large Canadian employers, several of which were discovered engaging in similar practices.[19]

References[edit]

  1. ^ http://www.aecon.com/About_Us/Companies__amp__Subsidiaries/ACML_Materials
  2. ^ http://www.aecon.com/FileRetrieval/Investor_Presentation.pdf?resourceID=1462&modID=1319206461000
  3. ^ http://www2.macleans.ca/2013/11/07/canadas-best-employers/
  4. ^ http://www.canadastop100.com/national/
  5. ^ http://www.cca-acc.com/en/about-cca/awards/cca-national-safety-award)
  6. ^ "AECON - History". www.aecon.com. Retrieved 2019-02-12.
  7. ^ http://www.aecon.com/About_Us/History
  8. ^ http://www.aecon.com/Media_Room?resourceID=843&articleView=individual&articleID=652
  9. ^ May 23, CBC News · Posted:; May 24, 2018 6:06 PM ET | Last Updated:; 2018. "Federal government blocks sale of construction giant Aecon to Chinese interests | CBC News". CBC. Retrieved 2019-02-12.
  10. ^ Inc, Aecon Group. "Aecon completes sale of Contract Mining business to North American Construction Group". www.newswire.ca. Retrieved 2019-02-12.
  11. ^ http://www.aecon.com/Media_Room/~1302-Aecon-to-hold-information-meeting-with-analysts
  12. ^ http://2012annualreport.aecon.com/Infrastructure
  13. ^ "AECON - Aecon Industrial". www.aecon.com. Retrieved 2019-02-12.
  14. ^ http://www.aecon.com/What_We_Do/Aecon_Concessions
  15. ^ http://2012annualreport.aecon.com/
  16. ^ https://www.insideottawavalley.com/news-story/7112578-toronto-business-fined-120-000-for-ontario-water-resources-act-violations-in-rideau-lakes-township/, http://www.siskinds.com/envirolaw/120000-fine-ontario-water-resources-act-violations/
  17. ^ https://news.ontario.ca/mol/en/2011/03/aecon-construction-group-inc-fined-225000-after-explosion.html
  18. ^ http://www.aecon.com/Media_Room/~855-Aecon-fined-in-relation-to-jobsite-explosion-in-2003
  19. ^ https://www.thestar.com/news/investigations/2008/06/29/hiding_injuries_rewards_companies.html