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NACG to buy 49 of mining contractor Nuna Logistics

first_imgNorth American Construction Group (NACG) has entered into a definitive agreement to acquire a 49% ownership interest in Nuna Logistics Ltd and related companies, a civil construction and contract mining company based in Edmonton, Alberta, for C$42.5 million in cash from a group of private selling shareholders.  The majority 51% ownership interest in Nuna 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 Martin Ferron, Chairman and CEO of NACG.  “Nuna’s revenue is entirely non-oil-sands related and they are recognised as a leading civil construction and mine services contractor in northern Canada, providing a clear strategic fit.”The transaction is aligned with NACG’s strategic goals, as Nuna expands end user coverage into other commodity areas (eg base metals, precious metals, and diamonds) and infrastructure-related projects that involve major earthworks. Nuna is an established incumbent 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 utilisation and efficiency, especially in a tightening marketplace.last_img read more