North American Construction Group Ltd. (NACG) says it will acquire a 49 per cent ownership interest in Nuna Logistics Limited and related companies, a civil construction and contract mining company based in Edmonton, for $42.5 million in cash from a group of private selling shareholders.
Nuna’s 51 per cent majority share is held by the Kitikmeot Corporation, a wholly owned business arm of the Kitikmeot Inuit Association.
“This Transaction represents a compelling opportunity for us to continue to execute on our strategy of customer and revenue diversification, while also reducing the overall capital intensity of our business and extending our reach into what we consider to be a very attractive market,” said NACG chair and CEO Martin Ferron. “Nuna’s revenue is entirely non-oil-sands related and they are recognized as a leading civil construction and mine services contractor in northern Canada, providing a clear strategic fit.”
NAGG says in its news release that Nuna is an established contractor in Nunavut and the Northwest Territories, but has also successfully completed major projects in Ontario, Saskatchewan and British Columbia.
“NACG believes that this acquisition will provide mutual benefit to both NACG and Nuna through access to broader equipment fleets, experienced field personnel and expanded services such as NACG’s growing external maintenance offering. This access to shared resources is expected to provide opportunity for improved utilization and efficiency, especially in a tightening marketplace,” the statement said.