Green Infrastructure Partners to buy ATE’s roadbuilding business

• The purchase price is C$235 million in cash
• GIP emerged last year from a spin-out of GFL Environmental, a Vaughan, Ontario-based environmental services company
• HPS Investment Partners, a US private equity firm, holds a 47 percent stake in GIP

Green Infrastructure Partners (GIP) has agreed to acquire the roadbuilding services, aggregates, and other materials supply businesses of Aecon Transportation East (ATE), focused on maintaining Ontario’s critical civil infrastructure.

The seller is Aecon Group, a Toronto-based infrastructure company.

The purchase price is C$235 million in cash. The transaction is likely to be completed in the first half of 2023, subject to relevant regulatory approvals.

GIP, headquartered in Toronto, is a provider of civil infrastructure services, with 33 asphalt plants, eight concrete plants, access to over 250 aggregate sites, and an asphalt cement terminal in Eastern Ontario.

“We are excited to add ATE’s vertically integrated roadbuilding solutions’ business in Ontario to GIP’s existing platform, further solidifying the breadth of our services to support public infrastructure from our operations in Ontario, British Columbia, Manitoba, Saskatchewan and Quebec,” said Patrick Dovigi, GIP’s executive chair, in a statement.

GIP emerged last year from a spin-out of GFL Environmental, a Vaughan, Ontario-based environmental services company. HPS Investment Partners, a US private equity firm, holds a 47 percent stake in the business.

GFL Environmental is backed by BC Partners, Ontario Teachers’ Pension Plan and HPS.