North American Construction buys $42.5M stake in Nunavut, N.W.T. construction firm Nuna
ACHESON, Alta—North American Construction Group Ltd. is branching out.
The Alberta contractor, which focuses mainly on mining and heavy construction jobs, particularly in the oilsands, has bought a minority stake in Nuna Logistics Ltd.
The $42.5 million deal will give North American a 49 per cent interest in the civil construction and contract mining company active across Nunavut and Northwest Territories. The stake was previously owned by a group of private investors. The remaining 51 per cent of the company is held by Kitikmeot Corp.—itself a unit 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,” Martin Ferron, NACG’s chairman and CEO, said in a statement. “Nuna’s revenue is entirely non-oilsands related and they are recognized as a leading civil construction and mine services contractor in northern Canada, providing a clear strategic fit.”
Along with the two northern Canadian territories, Nuna has completed major jobs in Ontario, Saskatchewan and B.C.
The deal remains subject to customary approvals. North American expects it to close some time in the fourth quarter of this year.