Aecon's Power Play: $320M Buyout Cements Control of Utility Infrastructure Arm

TORONTO, ON – June 25, 2026 – In a decisive strategic move, Aecon Group Inc. announced today it will take full ownership of its high-growth subsidiary, Aecon Utilities, by purchasing Oaktree Capital Management's 27.5% stake for $320 million. The deal, expected to close late this year, is more than a simple financial transaction; it's a powerful statement of intent, positioning Aecon to fully capture the upside of North America's multi-billion dollar infrastructure boom.

The purchase price implies a staggering $1.5 billion enterprise value for Aecon Utilities, double the $750 million valuation from Oaktree's initial $150 million investment in late 2023. This rapid appreciation underscores the subsidiary's explosive growth and the immense market opportunity in utility services—a sector being supercharged by grid modernization, the 5G rollout, and the insatiable energy demands of data centers. By consolidating its ownership, Aecon is betting big on its ability to lead this transformation.

A Strategic Consolidation of Power

For Aecon, this acquisition is the capstone of its "One Aecon" integrated strategy. Taking full control of its utilities arm simplifies the company's capital structure and is expected to be immediately accretive to its adjusted earnings per share, a clear positive for shareholders. More strategically, it allows the parent company to fully integrate the subsidiary's specialized capabilities across its entire portfolio of construction and concession projects.

"This transaction accelerates Aecon’s overall growth in target markets, augments our self-perform offering with cross-selling opportunities, and enhances our ability to expand into growing regions with attractive project pipelines under a One Aecon approach,” said Jean-Louis Servranckx, President & Chief Executive Officer of Aecon.

The move provides Aecon with greater financial flexibility. Funding the deal from existing cash and credit facilities, the company is leveraging a strong balance sheet recently bolstered by a $172.5 million common share offering in March. By eliminating the preferred shares held by Oaktree, Aecon not only simplifies its financial reporting but also improves its debt metrics, allowing it to more efficiently deploy capital to fuel further growth. This financial maneuvering, coupled with a record backlog of nearly $11 billion as of the first quarter, places the company on exceptionally firm footing.

The Private Equity Playbook: A Profitable Exit

The deal also marks a highly successful exit for Oaktree Capital Management, serving as a textbook example of private equity's role in scaling critical infrastructure assets. When Oaktree's Power Opportunities fund invested $150 million in late 2023, it brought not just capital, but a deep network and over 25 years of expertise in the utilities sector.

The partnership's success is evident in the numbers. In less than three years, Aecon Utilities not only doubled its enterprise value but also significantly expanded its strategic footprint. Its presence in the lucrative U.S. market has grown to account for approximately 26% of pro forma revenue, while its focus on the high-demand electrical end-market now constitutes nearly half of its business.

"Aecon Utilities’ strong competitive position, long-term customer relationships and exposure to numerous market tailwinds provided an exceptional foundation for growth," said Jimmy Lee, Managing Director in Oaktree’s Power Opportunities Group. "We were proud to bring our resources and relationships to support Aecon Utilities’ talented leadership team."

Andrew Moir, a Managing Director in the same group, added that Oaktree was "delighted to contribute our knowledge and expertise in its organic and acquisitive growth across Canada and in the U.S." For Oaktree, the more than doubling of its initial investment represents a significant return, validating its thesis that specialized, mission-critical utility service providers are a prime area for investment.

Riding the Wave of North America's Infrastructure Boom

At its core, Aecon's buyout is a calculated move to capitalize on powerful secular trends reshaping the continent's infrastructure landscape. The demand for Aecon Utilities' services—spanning electrical, communications, and pipeline distribution—is being driven by unstoppable forces.

First is the urgent need for electrical grid modernization. Aging infrastructure across North America is struggling to cope with the dual pressures of an increasingly electrified economy and the integration of renewable energy sources. This necessitates massive investment in upgrading transmission and distribution networks, a core competency for Aecon Utilities.

Second, the digital transformation continues to accelerate. The rollout of 5G networks and the explosive growth of data centers require vast networks of fiber optic cables and robust, reliable power solutions. Aecon Utilities' recent acquisitions, such as KPC Power Electrical and Duna Services, have specifically bolstered its capabilities in high-voltage services and electrical distribution, positioning it to capture a larger share of this market.

“We were pleased to have partnered with an experienced and value-added investor in Oaktree to continue Aecon Utilities’ growth in Canada and the U.S. and each have benefited greatly from the partnership,” noted Eric MacDonald, Executive Vice President of Aecon Utilities, reflecting on the growth phase that has now prepared the subsidiary for its next chapter under full Aecon ownership. This move ensures that Aecon, and not an outside partner, will reap the full rewards from these powerful market tailwinds.

Unlocking Synergies with 'One Aecon'

With 100% ownership, Aecon can now fully realize the operational synergies envisioned in its "One Aecon" platform. The integration promises to break down silos between its various segments—from Civil and Nuclear to Urban Transportation—and its newly consolidated Utility arm. This creates a powerful competitive advantage, enabling the company to offer truly end-to-end solutions for complex, large-scale infrastructure projects.

Imagine a large urban transit project, a traditional strength for Aecon. With a fully integrated utilities division, the company can now handle the intricate and often challenging work of relocating power lines, communication cables, and pipelines in-house. This self-perform capability not only provides greater control over project timelines and costs but also creates significant cross-selling opportunities, turning what was once a subcontracted necessity into a core, value-added service.

This heightened integration is crucial as Aecon pursues major projects tied to the energy transition, including its work on nuclear power generation and small modular reactors. The ability to seamlessly pair large-scale construction with specialized utility infrastructure work makes Aecon a more formidable and attractive partner for both public and private sector clients. The $320 million investment is not just for a subsidiary; it's an investment in a more capable, integrated, and dominant version of Aecon itself.