Aecon to buy into oil sands extraction

Canadian contractor Aecon has signed a letter of intent to acquire Cow Harbour Construction, which it says is one of the three leading oil sands mining contractors in the country.

Cow Harbour was founded in 1987 and specialises in mining and land reclamation in the province of Alberta's oil sands. IT employs more than 800 people and has annual revenues of some CA$ 230 million (US$ 225 million).

Under the terms of the Letter of Intent, Aecon will pay CA$ 180 million (US$ 175 million) in cash to buy the company's assets. These include a fleet of more than 500 pieces of mining equipment as well as property, contracts, inventory, leases, intellectual property and other assets.

Aecon says that the acquisition will make it one of the largest mining and land reclamation contractors in the oil sands sector, complementing its current position as on of its leading heavy industrial contractors.

Aecon chairman & CEO John M. Beck said, "The expansion of our capabilities in the oil sands industry has been a strategic priority for us. This acquisition will solidify our competitive profile in a market we believe is poised for significant growth."

The target completion date is 31 August, but is subject to regulatory approvals within what Aecon describes as, "A complex process."