Aecon unit acquires Duna Services, 49% of KNX

Executive Summary

• Aecon Utilities Group Inc., a subsidiary of Aecon Group Inc., has acquired Duna Services LLC and its subsidiaries, along with a 49% interest in KNX Utility Services LLC, to significantly expand its U.S. electrical utility services footprint.
• The transaction carries a base purchase price of $60 million USD, with potential additional contingent proceeds, and is fully financed through Aecon Utilities' stand-alone committed revolving credit facility.
• The acquisition adds approximately 350 employees and deepens Aecon's capabilities in electrical distribution, transmission, and emergency restoration across the Midwest and Eastern United States.

Key Details

• Transaction Structure: Acquisition of Duna Services LLC and subsidiaries (Arc American LLC, C.A. Advanced LLC) plus a 49% equity interest in KNX Utility Services LLC from Ryker Holdings Inc.
• Purchase Price: Base consideration of $60 million USD, with potential for additional contingent proceeds.
• Financing: Funded through Aecon Utilities' stand-alone committed revolving credit facility.
• Duna Services Profile: Headquartered in Wakarusa, Ind.; ~350 employees; 14 years of experience providing underground/overhead electrical distribution, transmission, substation maintenance, and emergency restoration construction; operates primarily under master service agreements with utility and government clients; service area is geographically contiguous with Aecon's existing U.S. operations.
• KNX Utility Services Profile: Headquartered in Rodney, Mich.; certified women- and minority-owned business enterprise; 10+ years of experience specializing in emergency restoration and storm response for electrical distribution and transmission construction.
• Strategic Rationale: Accelerates growth in the U.S. electrical distribution and transmission market, augments self-perform capabilities with cross-selling opportunities, increases recurring revenue, and enhances expansion into regions with attractive project pipelines.
• Legal Counsel: Dechert LLP served as legal counsel to Aecon Utilities.

Notable Quotes

• Jean-Louis Servranckx, President and CEO, Aecon Group: "This acquisition provides additional U.S. platforms to accelerate growth in the electrical distribution and transmission market, augments our self-perform offering with cross-selling opportunities, increases recurring revenue, and enhances our ability to expand into growing regions with attractive project pipelines."
• Eric MacDonald, Executive Vice-President, Aecon Utilities: "We are pleased to strengthen our U.S. utility infrastructure expertise and extend a warm welcome to our new leadership groups and team members joining the Aecon Utilities group of companies."
• Scott Sheldon, President, Xtreme Powerline: "We look forward to harnessing opportunities for collaboration with our complementary Xtreme Powerline team while leveraging our collective capabilities to drive continued growth in priority markets across North America."