Ground engineering specialist Van Elle has agreed to sell off its subsidiary Van Elle Canada, two years after entering the Canadian market.
The deal, worth approximately CAD$4.7 million in total, will see the new owner, a special-purpose vehicle backed by Canadian rail contractor Remcan Projects, take control of the business this week.
The sale includes an initial cash payment of CAD$2.7 million, with the remaining CAD$2 million to be paid before the end of July 2026.
Piling specialist Van Elle entered the Canadian construction market in 2023 to offset its investments in the UK rail sector, but incurred losses due to project delays.
Under the new ownership model, Van Elle Canada will draw on local resources from Remcan while it maintains delivery and explores other opportunities in and around Ontario.
Van Elle’s UK rail division will remain in play, providing advisory services through a consultancy agreement.
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“Our diversification into Canada was a strategic initiative to mitigate the impact of UK rail sector investment cyclicality,” said Van Elle chief executive, Mark Cutler.
“Since 2023, Van Elle Canada has secured several important frameworks which, despite delays to date, provide a significant opportunity for the new owner to take to the next stage, with Van Elle continuing to provide specialised technical support.”
Back in September, Van Elle issued a profit warning in part due to a delay in new work getting underway because of the Building Safety Act.
Key challenges included high costs and delayed starts on construction contracts due to the approval process, impacting company income and full year profit potential, which bosses warned would be below market expectations.
Despite this, the medium-term trading outlook for the business remains positive, with opportunities in the energy and water sectors.
Current projects include HS2, Hinkley Point C, and the Lower Thames Crossing.
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