Investor group acquires North American Construction Group Inc.

Date Closed: 11/26/2003

Value: $400 million

Edmonton-based North American Construction Group Inc. was acquired by an investor group comprised of Houston, Texas-based Sterling Group, Genstar Capital, LP, Perry Strategic Capital Inc., Stephens Group Inc., BNP Paribas, management of North American Construction Group and others. The deal closed on November 26, 2003, and the total purchase price was approximately $400 million. The acquisition was financed by a syndicated bank financing, a cross-border senior unsecured note offering and a private equity offering. BNP Paribas and RBC Capital Markets Inc. acted as initial purchasers on the note offering. For the bank financing, Royal Bank of Canada acted as administrative agent and BNP Paribas acted as syndication agent.

Sterling Group was represented in Canada by BLG, with a team that included Frank Callaghan and Howard Silverman (banking), Rick Coburn (environmental), Adam Fanaki (competition), Stephen Heller (tax), Conor Fitzpatrick, Ross DeBoni, Eva Chan, Nathan Chan, Brennan Carroll and Jonathan Willson (tax) and Colin Simpson, Halla Elias, Donald Bird, Maria Doerksen, Cora Miller, Ryan Smith and Ken Andersen.