Aecon unit signs deal to acquire KPC Power, KPC Energy

Executive Summary

• Aecon Group Inc.'s subsidiary, Aecon Utilities Group Inc., has entered into a definitive share purchase agreement to acquire KPC Power Electrical Ltd. and KPC Energy Metering Solutions Ltd.
• The acquisition is expected to close in the fourth quarter of 2025, subject to customary closing conditions, and will be financed through Aecon Utilities' stand-alone committed revolving credit facility.
• KPC brings approximately 100 employees and specializes in high-voltage testing, commissioning, and energy metering solutions, primarily serving local distribution companies in Ontario.

Key Details

• Transaction Structure: Definitive share purchase agreement to acquire KPC Power Electrical Ltd. and KPC Energy Metering Solutions Ltd.
• Target Company: KPC Power Electrical Ltd. and KPC Energy Metering Solutions Ltd.
• Target Headquarters: Ontario, Canada.
• Target Employees: Approximately 100 employees collectively.
• Target Business Lines:
  • Power Electrical (Founded 2011): High-voltage testing and commissioning services, substation technical services, emergency response, project management, material procurement, quality assurance, and preventive maintenance.
  • Energy Metering Solutions (Founded 2018): End-to-end services including meter installation/replacement, reverification, testing, cross-phase analysis, compliance investigation, and troubleshooting for all voltage classes.
• Financing: Financed through Aecon Utilities' stand-alone committed revolving credit facility.
• Closing Conditions: Subject to customary closing conditions.
• Expected Closing Date: Fourth quarter of 2025.
• Management: KPC's existing management and operational teams will continue with KPC upon closing.
• Strategic Rationale: Strengthen relationships with key clients, increase recurring revenue, expand expertise and capacity, and accelerate ability to harness grid modernization, electrification, and infrastructure upgrade opportunities.

Notable Quotes

• "The acquisition of KPC strengthens our relationships with key clients, increases recurring revenue, expands our expertise and capacity, and accelerates our ability to harness significant grid modernization, electrification and infrastructure upgrade opportunities," said Jean-Louis Servranckx, president and chief executive officer of Aecon Group.
• "Together with our strategic partner, Oaktree, we look forward to welcoming the KPC team to the Aecon Utilities group of companies, and we are pleased to expand our diverse capabilities with new service offerings -- unlocking growth opportunities with existing and new utility clients," said Eric MacDonald, executive vice-president of Aecon Utilities.