North American Construction closes acquisition of MacKellar Group

North American Construction announced the closing of its acquisition of MacKellar Group, with an effective date of October 1, 2023. Total expected consideration is $395 million, with the final Consideration amount to be determined based on MacKellar’s audited financial statements as of September 30, 2023, which will be reflected in the Company’s financial statements for the year ending December 31, 2023. The Transaction was previously announced on July 26, 2023. Concurrent with closing of the transaction, the Company entered into an amended and restated senior revolving credit facility with an upsized overall lending capacity of $430 million provided by Canadian dollar and Australian dollar tranches. The Credit Facility permits incurrence of $300 million of secured equipment financing from third party providers resulting in a total borrowing limit of $730 million and representing a $255 million increase from the previous limit of $475 million. As part of the amendment, the maturity date of the Credit Facility was extended to October 3, 2026. Cash funding for the Closing was provided by draws from the Credit Facility for an upfront payment of A$75 million and the payout of existing equipment financing of approximately A$105 million. Equipment financing of approximately A$115 million was assumed at the Closing with remaining Consideration provided by earn-out and deferred payment mechanisms payable to the sellers over four years. As part of the Closing, Barry Palmer assumes the role of Regional President, Australia on a transitional basis while continuing in his executive role with the Company as Chief Operating Officer.