Davies advises Aecon’s $320 million sale of roadbuilding asset to Ontario-based infrastructure firm

Cassels, Bennett Jones, McCarthy Tétrault, Osler, McMillan also legal counsel this week

Davies advises Aecon’s $320 million sale of roadbuilding asset to Ontario-based infrastructure firm

Davies advised Aecon’s agreement to sell the company’s roadbuilding asset to an Ontario-based infrastructure firm in a deal valued at approximately $320 million (US$235 million). Also serving as legal counsel in this week’s deals roundup are Cassels, Bennett Jones, McCarthy Tétrault, Osler, and McMillan.

Aecon to sell ATE assets to GIP for $320 million

Aecon Group Inc. agreed to sell Aecon Transportation East (ATE), a roadbuilding infrastructure solutions provider, to Green Infrastructure Partners Inc. (GIP), an Ontario-based infrastructure company, in a deal valued at approximately $320 million (US$235 million).

Upon deal completion, major projects and pursuits in Ontario will leverage both Aecon's heavy civil construction services and GIP's roadbuilding capabilities.

Davies Ward Phillips & Vineberg LLP is serving as legal counsel and CIBC Capital Markets as exclusive financial advisor to Aecon.

Aecon President and CEO Jean-Louis Servranckx said, “Aecon's efforts are increasingly focused on helping meet its clients' sustainable infrastructure needs and harnessing the opportunities that are expected to come from the transition to a net zero economy through decarbonization. This transaction is consistent with Aecon's goal of targeting prudent balance sheet leverage and liquidity and also reduces the overall capital intensity of Aecon's business.”

The deal is expected to close in the first half of 2023, subject to customary adjustments and closing conditions.

Canadian mining firms Integra, Millennial to merge

British Columbia-based Integra Resources Corp. and Ontario-based Millennial Precious Metals Corp. have agreed to combine their respective companies in a deal that will create one of the largest precious metals development and exploration companies in the Great Basin.

The assets of the combined company will include Integra’s past producing gold-silver DeLamar Project in southwest Idaho and Millennial’s oxide-focused Wildcat and Mountain View Projects in western Nevada.

Cassels Brock & Blackwell LLP is serving as legal counsel and Cormark Securities Inc. as financial advisor to Integra.

Bennett Jones LLP is serving as legal counsel and Stifel GMP as financial advisor to Millennial.

Upon deal completion, existing shareholders of Integra and Millennial will own approximately 65 percent and 35 percent, respectively, of the outstanding Integra shares.

In connection with the transaction, Integra and Millennial welcomed Wheaton Precious Metals Corp. as a new cornerstone investor.

Wheaton President and CEO Randy Smallwood said, “We are pleased to support this transaction between Integra and Millennial and the much-needed consolidation in the industry. We look forward to becoming a meaningful shareholder of the combined entity, which provides Wheaton the opportunity of gaining exposure to high-quality exploration and development assets in one of the top mining jurisdictions in the world.”

Integra President and CEO George Salamis said, “The merger with Millennial is an exciting combination that provides balanced benefits to both sets of shareholders and streamlines the permitting and development of three high-quality, oxide, heap leach projects. The industry is in need of consolidation, and the support amongst the investment community and from Wheaton for this merger and concurrent financing has been resoundingly positive.”

Millennial President and CEO Jason Kosec said, “The result of this transaction will be a combined company with a greatly strengthened balance sheet, an enhanced leadership team, and a high-quality asset portfolio with three flagship heap leach projects in the Great Basin. This represents a significant step toward our long-term vision of building an industry leading USA-focused mid-tier gold producer.”

The deal is expected to close in the second quarter of 2023, subject to applicable regulatory approvals.

Domtar to sell Dryden pulp mill to US-based First Quality

Domtar Corporation, a part of the Paper Excellence Group, agreed to sell its Dryden pulp mill to First Quality Enterprises, Inc., an American multi-national manufacturing company.

McCarthy Tétrault LLP and McMillan LLP are serving as legal counsel and BMO Capital Markets as exclusive financial advisor to Domtar.

Osler, Hoskin & Harcourt LLP and Wachtell, Lipton, Rosen & Katz are serving as Canadian and US legal counsel, respectively, to First Quality.

The deal is expected to close early in the third quarter of 2023, subject to customary closing conditions.

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