Parties
Company
North American Construction Group Ltd.
Company
MacKellar Group
On July 26, 2023, North American Construction Group Ltd. (NACG) announced its acquisition of the Australia-based MacKellar Group for an estimated $395 million. This transaction, resulting from a two-year dialogue following NACG's Australian market entry in 2021, significantly enhances NACG's global customer service capabilities. MacKellar, known for its heavy construction equipment and strong performance in mining and civil sectors, aligns well with NACG's operational and cultural values. The strategic acquisition aims to leverage shared practices and growth strategies.
Financially, the deal involves bank-secured and vendor-provided debt financing, with an upfront payment of A$75 million and additional liquidity from an upsized credit facility. A significant part of the consideration is deferred, including an earn-out payable over four years.
The acquisition, expected to close in Q4 2023, awaits customary closing conditions. National Bank Financial served as NACG's exclusive financial advisor, with legal advice from Fasken Martineau DuMoulin LLP and Corrs Chambers Westgarth.
Deal Type
Merger & AcquisitionIndustry
MiningTransaction
$ 395,000,000Deal Status
ClosedClosing Date
04 October 2023