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Van Elle has agreed to sell its Canadian subsidiary less than three years after entering the market, citing delays in rail investment.
The groundworks firm said it will dispose of the entire share capital and assets of Van Elle Canada Inc to 1560169 B.C. Ltd, a special-purpose vehicle operating in partnership with Canadian rail contractor Remcan Projects LP.
Completion is expected on or around 17 December 2025, with the transaction backdated to take effect from 30 November.
In a London Stock Exchange announcement, Van Elle Holdings said the deal would generate proceeds of around CAD $4.7m (£2.5m), comprising an initial payment of CAD $2.7m (£1.5m) and a deferred sum of CAD $2.0m (£1.1m) payable in tranches between 31 January and 31 July 2026.
The company, recently listed by Construction News‘ Specialists Index 2025 as the second-largest ground engineering firm in the UK, noted that the deferred element was subject to closing balance sheet adjustments.
The initial payment is equivalent to the net book value of certain Canadian fixed assets, suggesting the deal may not result in a material gain or loss on disposal.
Chief executive Mark Cutler said the company had entered Canada in 2023 to reduce its exposure to UK rail spending cycles, adding: “Despite delays to date, Van Elle Canada has secured several important frameworks.
“These provide a significant opportunity for the new owner to take forward, with Van Elle continuing to provide specialised technical support.”
Van Elle will continue to advise Van Elle Canada under a consultancy agreement following the transaction.
The company said the new ownership would give the Canadian business greater local access to resources and allow it to build on progress in Ontario and other regions.
In September, Van Elle Holdings said it was set to miss its trading and profitability targets for the current financial year, blaming project delays linked to the Building Safety Act (BSA) that continue to cause disruption.