On October 23, 2023, Aecon Group Inc. announced that funds managed by Oaktree Capital Management's Power Opportunities strategy agreed to a strategic investment in Aecon Utilities Group Inc. Oaktree acquired a 27.5% ownership interest in Aecon Utilities through a $150 million convertible preferred equity investment. This move aimed to bolster Aecon Utilities' capacity to seize growth opportunities in the utility infrastructure sector across North America, especially in energy transition and decarbonization.

The investment valued Aecon Utilities at $750 million, based on a trailing twelve month Adjusted EBITDA multiple of 9.3x. Aecon Utilities received a $400 million revolving credit facility to support its growth and acquisition strategy, while Aecon Group strengthened its balance sheet with an additional $450 million facility.

Aecon Utilities, which operates in electrical transmission and distribution, renewables, telecommunications, and pipeline distribution, has shown a robust revenue growth profile with a 19% compound annual growth rate from 2019 to 2022. The strategic partnership with Oaktree is expected to leverage Oaktree’s expertise and network, enhancing Aecon Utilities' growth in the U.S. market.

The transaction is set to provide Aecon with immediate financial flexibility for strategic growth initiatives, while Oaktree’s investment will yield a 12% annual coupon for the first three years, increasing to 14% thereafter. CIBC Capital Markets acted as the exclusive financial advisor, with Davies Ward Phillips & Vineberg LLP providing legal counsel for Aecon.