Thousands of jobs saved as Carillion subsidiary is acquired
Thousands of people employed at one of Carillion’s overseas subsidiaries have had their jobs safeguarded following a new acquisition.
Fairfax Financial Holdings has reached an agreement with Carillion Canada Holdings to acquire certain assets and assume certain liabilities related to Carillion’s Canadian operations.
Under the transaction, Fairfax will acquire the services business previously run by Carillion in Canada relating to facilities management of airports, commercial and retail properties, defence facilities, select healthcare facilities and various oil, gas and mining clients, including those under the Outland brand.
However, the agreement does not extend to Canada’s largest roads maintenance contract, which covers 40,000 km of roads across Ontario and Alberta.
The transaction is subject to conditions, including approval by the Ontario Superior Court of Justice, various regulatory approvals and the satisfactory completion of due diligence by Fairfax.
The deal is expected to close in the first quarter of 2018.
“We are excited to have the services business of Carillion Canada join the Fairfax group,” said Prem Watsa, chairman and CEO of Fairfax.
“The services business of Carillion Canada has an excellent long-term track record and we look forward to working with this team in growing their business over the long-term.”
Simon Buttery, president and CEO of Carillion Canada, said: “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, and a strong platform for the continued growth of the business.”
Fairfax also intends to appoint the former Governor General of Canada, David Johnston, and the former Secretary to the Governor General of Canada, Stephen Wallace, to its board of directors once the transaction is complete.
Carillion Canada was operating under bankruptcy protection at the time of the parent company’s collapse last month.
The Wolverhampton-based group had been trying to offload the Canadian operation in the £300m asset sell-off it instigated as part of a recovery plan following its devastating profit warning last July.
