Toronto-based Fairfax Financial Holdings Limited and Carillion Canada Holdings Incorporated announced Feb. 5 they have entered into an agreement for Fairfax to acquire the services division of Carillion Canada.
The services business affected by the deal includes facilities management of airports, commercial and retail properties, defense facilities, select health care facilities and services for of oil, gas and mining clients, including under the Outland brand, a media statement said.
On Jan. 15 Carillion Canada’s parent company Carillion PLC based in the U.K. announced it was going into liquidation in that country after failing to reach a restructuring deal with its lenders.
At the time of the announcement, the Carillion Canada website said its divisions employed 6,000. Some 75 per cent of that workforce will now be joining Fairfax.
The firm is active in the construction and transmission sectors in Canada and providing maintenance and support services including highway maintenance.
The transaction is subject to customary closing conditions, the statement said, including approval by the Ontario Superior Court of Justice in Carillion Canada’s proceedings under the Companies’ Creditors Arrangement Act, applicable regulatory approvals and the satisfactory completion of due diligence by Fairfax. It is expected to close in the first quarter of 2018.
Simon Buttery, president and CEO of Carillion Canada, said in the statement, “We are delighted that more than 4,500 members of our team will be joining the Fairfax family. This transaction will provide certainty and stability for the clients we work for and the customers we serve.”
“We are excited to have the services business of Carillion Canada join the Fairfax group,” said Prem Watsa, chairman and CEO of Fairfax.
Fairfax also announced its intention to appoint David Johnston, former governor general of Canada, and Stephen Wallace, former secretary to the governor general, to the board of directors of the acquired Canadian companies upon closing of the transaction.