French road builder Colas branches out in Canada

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Thu, 31 Aug 2017 - 08:55 GMT

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Thu, 31 Aug 2017 - 08:55 GMT

© AFP/File | French road builder Colas says it plans to boost its presence in Canada by buying Ontario-based firm, Miller McAsphalt, for around Can$1 billion

© AFP/File | French road builder Colas says it plans to boost its presence in Canada by buying Ontario-based firm, Miller McAsphalt, for around Can$1 billion

PARIS - 31 Aug 2017:French road builder Colas, a subsidiary of construction giant Bouygues, said Thursday it plans to boost its presence in Canada by buying Ontario-based firm, Miller McAsphalt, for around Can$1 billion.

Colas said in a statement that its Canadian unit had "signed a share purchase agreement for the acquisition of 100 percent of the equity interest in the Miller and McAsphalt group."

The Miller and McAsphalt group, with a workforce of 3,300 and average annual sales of Can$1.3 billion ($1.0 billion, 865 million euros), was "a major player in road construction and in bitumen distribution in Canada, with a particularly strong presence in Ontario," the statement said.

"This operation 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 agreed purchase price is approximately 12 times the average operating profit of the group, or around Can$1.09 billion, Colas said.

The deal, to be completed at the beginning of 2018, would be debt-financed and "will not alter Colas' strong balance sheet," the French group 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," said Colas chief executive, Herve Le Bouc.

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