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News » Canada » Colas to buy major road and bitumen business » published 31 Aug 2017

Colas to buy major road and bitumen business

Colas Canada has agreed to buy road construction and bitumen business Miller & McAsphalt group.

This latest move in Colas’ external growth is the company’s most significant acquisition in North America. It is seen offering an opportunity to increase Colas’ presence in Ontario and to expand its bitumen distribution network across Canada.

Colas Canada signed a share purchase agreement in Toronto yesterday (30 August) for the acquisition of 100% of the equity interest in the Miller & McAsphalt group, which has a particularly strong presence in Ontario. Miller & McAsphalt has a headcount of 3,300, generates average annual sales of about CA$1.3bn and has an average operating margin of 7%.

The purchase price payable at closing is subject to certain adjustments and is expected to represent approximately 12 times the average operating profit of the group.

The deal forms part of Colas’ long-term strategy to expand its operations in North America. The North American market presents strong growth prospects given the major transport infrastructure construction and maintenance needs.

The acquisition of the Miller and McAsphalt group will enable Colas Canada to expand its geographical coverage by increasing its presence in Ontario and considerably increasing its bitumen storage capacity across Canada.

Closing of the deal is expected to occur in the beginning of 2018. The closure is subject to specific closing conditions, including regulatory approvals under the Canada Competition Act, the Investment Canada Act and the Canada Transportation Act.

Hervé Le Bouc, Colas chairman and CEO, said: “This important acquisition by Colas reaffirms its continued confidence in the Canadian economy and is part of its strategy to increase its presence in North America. Becoming one of the leaders in a competitive and active market will pave the way for improved know-how and industry innovations.”



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This article was published on 31 Aug 2017 (last updated on 7 Sep 2017).

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