Canadian construction company Aecon Group Inc said it acquired GCCL Contracting Ltd for about C$4.4 million as it looks to expand into other areas of the road building business.
Aecon said it would pay Orangeville, Ontario-based GCCL about C$4.4 million, of which about C$2 million would be paid over a four-year term.
The acquisition of GCCL, which has traditionally focused on hot-mix paving, offers opportunities to expand into areas such as sanitary sewer installations and water-main work, Aecon said.
Aecon said the deal also provides opportunities through partnerships for its other units, such as Aecon Construction and Materials Ltd, Aecon Utilities and Aecon Materials Engineering.
GCCL, a unit of the Greenwood group of companies, has generated revenue of C$10 million in recent years, Aecon said.
Aecon shares, which have gained about 25 percent in value in the last six months, closed at C$13.87 Friday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Anne Pallivathuckal)