Fairfax to buy some assets of financially-strapped Carillion Canada
The deal will see 4,500 workers at Carillion-managed facilities transferred to the Toronto-based holding company
TORONTO—Fairfax Financial Holdings Ltd. has signed a deal to buy part of Carillion Canada, which filed for court protection from creditors last month.
Financial terms of the deal were not immediately available.
Under the transaction, Fairfax said Feb. 5 it will acquire Carillion Canada’s facilities management business that provides services to airports, commercial and retail properties, defence facilities, health care facilities and oil, gas and mining clients.
“The services business of Carillion Canada has an excellent long-term track record and we look forward to working with this team in growing their business over the long-term,” Fairfax chairman and chief executive Prem Watsa said in a statement.
The deal will see more than 4,500 Carillion Canada employees move to Fairfax.
“This transaction will provide certainty and stability for the clients we work for and the customers we serve, and a strong platform for the continued growth of the business,” said Simon Buttery, Carillion Canada’s president and chief executive.
Carillion Canada was forced to seek protection under the Companies’ Creditors Arrangement Act after its parent company, British construction giant and state contractor Carillion PLC, entered compulsory liquidation.
The transaction is subject to customary closing conditions, including approval by the Ontario Superior Court overseeing Carillion Canada’s operations.
Carillion Canada has said it would use the court protection to stabilize operations and consider options to satisfy creditors and the court.
The protection order covers Carillion Construction Inc., Carillion Canada Inc., Carillion Canada Holdings Inc. and Carillion Canada Finance Corp.
The company employs more than 6,000 people in Canada.
According to its website, its operations include facilities management and maintenance, as well as handling road maintenance for 40,000 kilometres of highway in Alberta and Ontario.
It is also involved in private public construction partnerships, one of which is currently building a new mental health hospital in North Battleford, Sask.