Lafarge sells 5 paving plants in Canada

(Halifax, Canada)  —  The Halifax-based Municipal Group of Companies, which includes Dexter Construction Co. Ltd., has signed an agreement in principal to buy construction assets from Lafarge, a major competitor in Nova Scotia for Dexter Contruction.  None of the 200 jobs will be affected by the $40 million deal.

The assets include five paving plants in New Brunswick and Nova Scotia. New paving plants cost between $500,000 and $4 million dollars to build. The deal also means Dexter will take over two paving deals awarded to Lafarge in New Brunswick worth $4 million.
The Nova Scotia government has said it will commit $1 billion to roads and highways over the next three years.

Lafarge sells  5 asphalt plants in Canada

(Halifax, Canada)  —  The Halifax-based Municipal Group of Companies, which includes Dexter Construction Co. Ltd., has signed an agreement in principal to buy construction assets from Lafarge, a major competitor in Nova Scotia for Dexter Contruction.  None of the 200 jobs will be affected by the $40 million deal.

The assets include five paving plants in New Brunswick and Nova Scotia. New paving plants cost between $500,000 and $4 million dollars to build. The deal also means Dexter will take over two paving deals awarded to Lafarge in New Brunswick worth $4 million.
The Nova Scotia government has said it will commit $1 billion to roads and highways over the next three years.

Hugh Smith, vice-president with the Municipal Group of Companies, confirmed Thursday his company has purchased the paving and construction assets of Lafarge in the Maritimes.

Those assets include five paving plants (four in Nova Scotia, one in Saint John, N.B.), a fleet of rollers and graters and associated paving equipment. The company now has nine plants.

Lafarge has 200 local employees and Mr. Smith said Municipal will be hiring all of them.

With a large portion of the recently promised federal stimulus money being poured into infrastructure projects, he said all of the eight to 10 paving companies in the province are gearing up for a busy season.

From a competitive point of view, the purchase gives Municipal firmer footing in the Annapolis Valley and its first significant foothold in New Brunswick. The company has a quarry in Moncton and has done some work in the province, but he said with a paving plant in Saint John, the opportunity to grow is significant.

As part of the deal, Municipal takes over Lafarge contracts that were won with provincial governments last fall or earlier this year. There may be some centralization when it comes to bidding, but he said Lafarge will likely be operated as a separate division.

The Municipal Group includes Municipal Contracting, which focuses on heavy construction in Halifax, Dexter Construction, a contracting company serving both provinces, and Envirosoil, an environmental remediation firm.

The deal has been in the works since before Christmas when Mr. Smith read in a business magazine that Lafarge, headquartered in France, was selling off its North American paving assets to pay down bank debt.

“From their perspective, it’s not a great time to be selling, but for us it’s a great time to buy.”

Mr. Smith said the company looked at the Ontario assets for sale, but in the end decided to keep its focus close to home.

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