Aecon Group Inc., the Canadian construction company, agreed to buy Lockerbie & Hole Inc. for about C$220 million ($177 million) to expand its business in western Canada’s oil-sands industry.

Aecon, based in Toronto, offered C$8 a share in cash and stock, 30 percent more than Lockerbie’s closing price of C$6.15 on Jan. 30, the companies said today in a statement. Aecon expects the deal will add to earnings in the first year, excluding amortization costs.

The transaction will allow Aecon to expand in western Canada’s construction and wastewater-management industries and add to its services for energy companies in Alberta’s oil sands, Aecon said. Lockerbie, based in Edmonton, Alberta, does construction primarily in oil sands, mining and commercial markets.

Aecon will pay 75 percent in cash and will issues shares to Lockerbie investors for the remainder. Lockerbie will pay Aecon a C$7.2 million fee if the transaction isn’t completed.

Shareholders with 29 percent of Lockerbie stock agreed to vote in favor of the transaction, the companies said. The takeover requires the support of two-thirds of Lockerbie shareholders.

GMP Securities advised Lockerbie, while TD Securities worked with Aecon.

Lockerbie rose C$1.57, or 28 percent, to C$7.90 at 3:59 p.m. in trading on the Toronto Stock Exchange. The company sold shares in an initial public offering at C$10.25 each in 2007. Aecon fell 24 cents, or 2.3 percent, to C$10.01.

Posted on 2 February '09, under Business.