Group led by Toronto’s Brookfield to buy Westinghouse for US$4.6B
by David Paddon, The Canadian Press
Facing financial troubles, Toshiba has been searching for a buyer for its nuclear subsidiary that designs reactors and supplies power plants
Watts Bar Nuclear plant in Tennessee houses a pair of Westinghouse nuclear reactors. PHOTO: TVA
TORONTO—Brookfield Business Partners LP and its partners will buy Westinghouse Electric Co. from Toshiba Corp. in a US$4.6 billion deal announced Jan. 4.
Westinghouse Electric, which has its headquarters in the Pittsburgh area, is among the world’s leading infrastructure suppliers to nuclear power generating facilities but sought creditor protection from U.S. Bankruptcy Court last March.
Brookfield Business Partners said it expects to fund the purchase of 100 per cent of Westinghouse through a combination of US$1 billion of equity, $3 billion of long-term debt and the assumption of certain obligations.
The deal is subject to court, regulatory and others approvals. It’s expected to close in the third quarter.
Toshiba has been majority owner of Westinghouse Electric since 2006 and achieved full ownership last year by buying a minority shareholder’s 10 per cent stake for about US$522 million.
The Japanese company later announced in November that it was exploring alternatives to sell the U.S.-based company.
“Brookfield’s acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry,” Westinghouse chief executive Jose Emeterio Gutierrez said in a statement.
“Our transformation and strategic restructuring process is creating a stronger, stable, and more streamlined global Westinghouse business, for the benefit of our customers and employees.”
Cyrus Madon, CEO of Brookfield Business Partners, said Westinghouse has a reputation for innovation and a long-term customer base.
“We look forward to bringing our significant expertise and reputation as a long-term owner and operator of critical infrastructure in the U.S. and globally, as well as our deep facilities management capabilities, to enhance the company’s position as a leading global infrastructure services provider to the power generation industry.”
Brookfield Business Partners is a publicly traded affiliate of Toronto-based Brookfield Asset Management, which has investments in a wide range of business segments including real estate and power generation.
