Brookfield and the Caisse buy automotive battery business from Johnson Controls
The companies say it is well positioned to benefit from the growth in demand for advanced batteries
MONTREAL – Brookfield Business Partners LP and the Caisse de depot et placement du Quebec, together with a group of institutional partners, have signed a deal to buy Johnson Controls’ power solutions business for US$13.2 billion.
The business produces batteries for automakers and aftermarket distributors and retailers.
The companies say it is well positioned to benefit from the growth in demand for advanced batteries, including those used in electric vehicles.
The transaction will be funded with approximately US$3 billion of equity and about US$10.2 billion of long-term debt financing.
Brookfield Business Partners expects to fund approximately 30 per cent of the equity, while CDPQ will fund about 30 per cent with the balance being funded by other institutional partners.
Brookfield Business Partners is the main business services and industrials company of Brookfield Asset Management Inc.