Canadian financial firm Fairfax has announced that it has agreed to acquire some of the Canada-based assets of bankrupt global construction giant Carillion.
The UK branch initially collapsed on 15 January, with the company’s Canadian unit filing for creditor protection 11 days later, putting 6,000 Canadian jobs in jeopardy. However, with Fairfax now agreeing to a partial acquisition, many of those jobs will be saved.
“We are delighted that more than 4,500 members of our team will be joining the Fairfax family,” said Simon Buttery, President and CEO, Carillion Canada. “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.”
The agreement will see Fairfax acquiring the services business of Carillion across Canada, carrying out the facility management of airports, commercial and retail properties, and defence, healthcare and other facilities.
“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.”
Fairfax also announced that it would be appointing former Governor General of Canada, David Johnstone, and former Secretary to the Governor General of Canada, Stephen Wallace, to the Board of Directors of the acquired companies upon the closing of the transaction.