Mr. Adam Borgatti reports

AECON UTILITIES AGREES TO ACQUIRE HIGH-VOLTAGE TESTING, COMMISSIONING AND METERING SOLUTIONS CONTRACTOR KPC

Aecon Group Inc.'s subsidiary, Aecon Utilities Group Inc., has entered into a definitive share purchase agreement to acquire KPC Power Electrical Ltd. and KPC Energy Metering Solutions Ltd., headquartered in Ontario. The transaction will be financed through Aecon Utilities' stand-alone committed revolving credit facility and is subject to customary closing conditions. KPC's existing management and operational teams will continue with KPC upon closing of the transaction, which is expected in the fourth quarter of 2025.

KPC's privately owned companies have approximately 100 employees collectively and the majority of their work is with local distribution companies in Ontario.

Founded in 2011, KPC's power electrical business provides high-voltage testing and commissioning services, including substation technical services, emergency response, project management, material procurement, quality assurance and preventive maintenance, amongst other services.

Founded in 2018, KPC's energy metering solutions business provides end-to-end services, including meter installation and replacement, reverification, testing, cross-phase analysis, compliance investigation, and troubleshooting services for all voltage classes.

"The acquisition of KPC strengthens our relationships with key clients, increases recurring revenue, expands our expertise and capacity, and accelerates our ability to harness significant grid modernization, electrification and infrastructure upgrade opportunities," said Jean-Louis Servranckx, president and chief executive officer of Aecon Group.

"Together with our strategic partner, Oaktree, we look forward to welcoming the KPC team to the Aecon Utilities group of companies, and we are pleased to expand our diverse capabilities with new service offerings -- unlocking growth opportunities with existing and new utility clients," said Eric MacDonald, executive vice-president of Aecon Utilities.

About Aecon Group Inc.

Aecon is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its construction segment in the civil, urban transportation, nuclear, utility and industrial sectors and provides project development, financing, investment, management, and operations and maintenance services through its concessions segment.

About Aecon Utilities Group Inc.

Aecon Utilities is a leading provider of utility infrastructure solutions in Canada, with a growing presence in the United States, operating in four end markets: electrical transmission and distribution, renewables and in-home services, telecommunications, and pipeline distribution. A significant portion of Aecon Utilities' revenues is generated from recurring revenue programs for public and leading private utility-sector clients. Funds managed by Oaktree Capital Management LP, through its power opportunities strategy, invested in a net $150-million convertible preferred equity investment in October, 2023, that is convertible into a 27.5-per-cent ownership interest in Aecon Utilities.

About KPC Power Electrical Ltd. and KPC Energy Metering Solutions Ltd.

KPC provides responsive and reliable end-to-end utility contracting solutions that are critical to the success of both businesses and society. Through its power electrical and energy metering solutions businesses, KPC specializes in high-voltage testing, commissioning and energy metering solutions for projects in Ontario with an unwavering commitment to safety, reliability and quality.

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