Aecon unit acquires Duna Services, 49% of KNX

Mr. Adam Borgatti reports AECON UTILITIES EXPANDS U.S. ELECTRICAL UTILITY SERVICES CAPABILITIES WITH ACQUISITION OF DUNA SERVICES AND AN INTEREST IN KNX UTILITY SERVICES Aecon Group Inc.'s subsidiary, Aecon Utilities Group Inc., has acquired Duna Services LLC and its subsidiaries, Arc American LLC and C.A. Advanced LLC, and a 49-per-cent interest in KNX Utility Services LLC from Ryker Holdings Inc. for a base purchase price of $60-million (U.S.) with the potential for additional contingent proceeds. The transaction is being financed through Aecon Utilities' stand-alone committed revolving credit facility. Headquartered in Wakarusa, Ind., Duna Services and its subsidiaries have approximately 350 employees and bring 14 years of experience providing underground and overhead electrical distribution, transmission, substation maintenance and emergency restoration construction services. The majority of its work is conducted under master service agreements with utility and government clients, and its service area is geographically contiguous with Aecon Utilities' existing operations and focused on the Midwest and Eastern United States. KNX is a certified women- and minority-owned business enterprise headquartered in Rodney, Mich., with over a decade of experience providing emergency restoration and storm response services for electrical distribution and transmission construction work. "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," said Jean-Louis Servranckx, president and chief executive officer of Aecon Group. "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," said Eric MacDonald, executive vice-president, Aecon Utilities. "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," said Scott Sheldon, president of Xtreme Powerline. Dechert LLP served as legal counsel to Aecon Utilities. About Aecon Group Inc. Aecon is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its construction segment in the civil, urban transportation, nuclear, utility and industrial sectors and provides project development, financing, investment, management, and operations and maintenance services through its concessions segment. About Aecon Utilities Group Inc. Aecon Utilities is a leading provider of utility infrastructure solutions in Canada, with a growing presence in the United States, operating in four end markets: electrical transmission and distribution, renewables and in-home services, telecommunications, and pipeline distribution, through independent subsidiaries. A significant portion of Aecon Utilities' revenue is generated from recurring revenue programs for public and leading private utility-sector clients. About Duna Services LLC Duna Services and its subsidiaries, Arc American and C.A. Advanced, bring 14 years of experience safely delivering underground and overhead electrical distribution, transmission, substation maintenance, and emergency restoration construction services for utility and government clients. About KNX Utility Services LLC KNX is a certified women- and minority-owned business enterprise with over a decade of experience providing emergency restoration and storm response services for electrical distribution and transmission construction work. Driven by skilled crews and a safety-first culture, KNX delivers solutions for projects of all scopes and sizes. We seek Safe Harbor.