Brookfield to buy U.S. car parts maker DexKo Global for $3.4 bln (updated)

Brookfield Business Partners LP

05/07/2021 12:32

(Adds background, details of deal)
    July 5 (Reuters) - Brookfield Business Partners LP  BBU.N 
 BBU_u.TO  and its institutional partners said on Monday they
would acquire U.S. car parts maker DexKo Global Inc from private
equity firm KPS Capital Partners LP for $3.4 billion.
    Based in Novi, Michigan, DexKo produces engineered trailer
running gear and chassis assemblies and has more than 6,000
employees. KPS Capital Partners acquired DexKo Global from
Sterling Group LP in 2017. 
    Brookfield Business Partners, which is the listed business
services and industrials arm of Canada's Brookfield Asset
Management  BAMa.TO , said the deal would be funded with about
$1.1 billion of equity.
    Brookfield plans to invest about $400 million towards the
deal, expected to close by the year end, with the rest of the
funding provided by its institutional partners.
    The company said the financing will be led by a syndicate of
banks which includes Credit Suisse, Deutsche Bank, BMO Capital
Markets, Bank of America, Goldman Sachs and RBC Capital Markets.

 (Reporting by Amruta Khandekar; Editing by Shailesh Kuber)
 ((Amruta.Khandekar@thomsonreuters.com;))