Bermuda: Canadian firm purchases major stake in L.F. Wade Int Airport

Aecon Group announced that it has entered into an agreement with Canadian firm Connor, Clark and Lunn Infrastructure (CC&L Infrastructure) to sell a 49.9 per cent minority interest in the operations at Bermuda’s L.F. Wade International Airport (Bermuda Skyport).

The deal is worth US$128.5 million.

Aecon will retain the management contract for the airport and remain the controlling shareholder of Skyport, owning a 50.1 per cent interest.

The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2023.

“This transaction highlights the value of the Bermuda International Airport concession and underlines the contribution of the Concessions’ portfolio of projects to Aecon,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group.

“Aecon continues to target a prudent balance sheet while preserving capital for other long-term growth and concession opportunities.”

“We are very pleased to welcome CC&L Infrastructure as a financial partner and look forward to working together to continue to deliver value to Bermuda through this award-winning airport,” said Steve Nackan, Executive Vice President and President, Aecon Concessions.  “This partnership demonstrates investor confidence in the future of Bermuda’s economy, including post-pandemic recovery and tourism growth.”

Aecon has 24 years remaining on a 30-year contract to operate the L.F. Wade International Airport.

CC&L Infrastructure is part of a CAD$100 billion conglomerate that has business interests in several sectors across the world.

CC&L Infrastructure executives say the company’s purchase of share’s in the concession agreement is a good investment.

“We are excited to expand to a new sector and geography with the addition of this interest in a world-class airport,” said Matt O’Brien, President of CC&L Infrastructure. “This investment is consistent with our strategy of investing in high-quality, long-duration assets in creditworthy jurisdictions. The L.F. Wade International Airport is an excellent example of a resilient, durable asset with potential for growth as passenger traffic recovers in the wake of COVID-19 – providing an attractive complement to our existing, well-diversified portfolio of infrastructure assets.”

Ryan Lapointe, Managing Director of CC&L Infrastructure, added: “We believe that Bermuda is a strong jurisdiction for investment and are excited to be partnered with Aecon and the team at Skyport in the delivery of a high-quality airport offering to the Government and people of Bermuda.”

“As a long-term investor, we look forward to working with our partners at Aecon and the Government of Bermuda in the continued successful operation of the Bermuda International Airport for many years to come.”