Aecon follows oilsands wealth with $180M Cow Harbour buy

One of Canada’s largest construction companies is continuing its pursuit of oilsands wealth with yet another multimillion-dollar purchase in Alberta.

Less than two years after bagging construction contractor Lockerbie & Hole, Toronto-based Aecon Group Inc is planning to snatch up financially troubled Cow Harbour Construction Ltd for $180 million.

Cow Harbour, one of the top three mining and land-reclamation companies in the oilsands, filed for bankruptcy protection this spring, choked by the credit squeeze following several years of rapid growth during the resource boom.

“This acquisition will solidify our competitive profile in a market we believe is poised for significant growth,” Aecon Group CEO John Beck said in a statement.

“The expansion of our capabilities in the oilsands industry has been a strategic priority for us.”

Aecon Group’s latest investment into an area that contains the largest oil reserves outside Saudi Arabia comes at a time oilsands companies are reviving projects stalled during the 2009 economic downturn.

Aecon has already benefitted from the new vigour in the oilsands, winning one of the largest infrastructure contracts in its history for Suncor Energy’s Firebag project last fall.

Through its purchase, which is still subject to regulatory and court approval, Aecon Group is gaining a fleet of more than 500 pieces of mining equipment, real estate, intellectual property and Cow Harbour’s contracts.

At its peak, Cow Harbour had more than 800 employees and made $230 million in revenues.

Teri McKibbon, head of Aecon’s infrastructure division, said buying Cow Harbour “will enable us to strengthen and deepen our relationships with key clients in the oilsands” and allow Aecon to bid for a wider range of contracts.

markus.ermisch@sunmedia.ca