Brookfield to take 45% stake in BrandSafway for $1.3 bln (updated)

Brookfield Business Partners LP

30/09/2019 18:41

(Adds details on the deal, background)
    Sept 30 (Reuters) - Investment manager Brookfield Business
Partners LP  BBU_u.TO   BBU.N  said on Monday it will pay $1.3
billion for a 45% stake in industrial services company
BrandSafway from private equity firm Clayton, Dubilier & Rice
(CD&R).
    The deal values BrandSafway at about $6.7 billion, including
debt of about $3.8 billion, according to Reuters calculations.
    Brookfield said CD&R will own a 45% stake after the deal,
with the remaining 10% to be held by BrandSafway's management.
CD&R first invested in BrandSafway in 2013.
    The deal adds a construction services company, with
customers including ExxonMobil Corp  XOM.N  and Royal Dutch
Shell Plc  RDSa.L , to Brookfield's portfolio. 
    Brookfield, a spinoff from Brookfield Asset Management
 BAMa.TO , primarily invests in business services and industrial
operations related companies.
    Last year, the company bought Johnson Controls International
Plc's  JCI.N  power solutions business, in a deal valued at
$13.2 billion.  urn:newsml:reuters.com:*:nL4N1XO4V5
    BrandSafway provides services to more than 30,000 customers
across 30 countries and generates more than $5 billion in annual
revenue.
    Debevoise & Plimpton LLP is the legal adviser to CD&R on the
deal, which is expected to close in the first quarter of 2020.

 (Reporting by Arunima Kumar and Shariq Khan in Bengaluru;
Editing by Sriraj Kalluvila)
 ((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780,
outside U.S. +91 80 6749 9759;))