The ground engineering specialist has agreed to sell the entire share capital and assets of Van Elle Canada Inc for £2.6m to a special-purpose vehicle backed by leading Canadian rail contractor Remcan Projects. Completion is expected around 17 December.

Van Elle entered Canada in 2023 as a hedge against UK rail investment cycles, shipping across its piling RRVs and trying to replicate the group’s specialist model in a fast-growing market.

But the business failed to deliver what was hoped for amid continued delays to the Toronto Metrolinx GO Expansion programme.

Last year Van Elle Canada posted £3.5m revenue but racked up a £1.3m loss, following a £1m hit the previous year.

Under the new ownership structure, backed by Remcan’s local muscle and resources, the Canadian arm is expected to accelerate delivery and pursue wider opportunities across the region.

Van Elle’s UK rail division will remain plugged in, providing technical support through a consultancy agreement.

Chief Executive Mark Cutler said: “Our diversification into Canada was a strategic initiative to mitigate the impact of UK rail sector investment cyclicality.

“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.”