Aecon Utilities expands U.S. electrical utility services capabilities with acquisition of Duna Services and an interest in KNX Utility Services

Executive Summary

• Aecon Utilities Group Inc. acquired Duna Services, LLC (including Arc American, LLC and C.A. Advanced, LLC) and a 49 % interest in KNX Utility Services, LLC for a base purchase price of US $60 million plus contingent consideration.
• The acquisition expands Aecon’s U.S. utility infrastructure platform, adds ~350 employees, and broadens service coverage across the Midwest and Eastern United States.
• Financing is provided through Aecon Utilities’ standalone committed revolving credit facility; the deal is expected to increase recurring revenue, cross‑sell opportunities, and growth in priority North American markets.

Key Details

• Target Companies:
• Duna Services, LLC – provider of underground/overhead electrical distribution, transmission, substation maintenance, emergency restoration construction (≈350 employees).
• Subsidiaries: Arc American, LLC; C.A. Advanced, LLC.

• KNX Utility Services, LLC – women‑ and minority‑owned business delivering emergency restoration & storm response for electric distribution/transmission (49 % stake acquired).

• Purchase Price: US $60 million base price; additional contingent proceeds possible (terms not disclosed).

• Financing Structure: Transaction funded via Aecon Utilities’ standalone committed revolving credit facility (no new equity or debt issuance disclosed).

• Strategic Rationale (CEO Quote): “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.” – Jean‑Louis Servranckx, President & CEO, Aecon Group Inc.

• Operational Impact:

• Adds ~350 employees and 14 years of utility construction expertise to Aecon Utilities.
• Service area now contiguous with existing operations, strengthening presence in Midwest/Eastern U.S. markets.

• Integration expected to generate cross‑selling synergies across Aecon’s Utility, Xtreme Powerline, and other platform businesses.

• Legal Counsel: Dechert LLP (representing Aecon Utilities).

Notable Quotes

• “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.” – Eric MacDonald, EVP, Aecon Utilities
• “We look forward to harnessing opportunities for collaboration with our complementary Xtreme Powerline team…” – Scott Sheldon, President, Xtreme Powerline