Brookfield Business Partners will acquire 100% of Westinghouse Electric, a global provider of infrastructure services to the power generation industry, from its current owner Toshiba for approximately $4.6 billion.
The transaction is expected to be funded with approximately $1 billion of equity, approximately $3 billion of long-term debt financing and the balance by the assumption of certain pension, environmental and other operating obligations.
“Brookfield’s acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry,” said Westinghouse President and CEO José Emeterio Gutiérrez. “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.”
“Westinghouse is a high-quality business that has established itself as a leader in its field, with a long-term customer base and a reputation for innovation,” said Cyrus Madon, CEO of Brookfield Business Partners. “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.”
Brookfield Business Partners will commit to fund approximately 50% of the equity on closing using existing liquidity. Prior to or following closing, a portion of Brookfield Business Partners’ investment may be syndicated to other institutional investors.
Closing of the transaction remains subject to bankruptcy court approval and customary closing conditions including, among others, regulatory approvals. Closing is expected to occur in Q3/18.
PJT Partners is the financial advisor to Westinghouse. Weil, Gotshal & Manges is Westinghouse’s legal counsel, and AlixPartners is Westinghouse’s turnaround consultant.
Brookfield Business Partners is a business services and industrials company focused on owning and operating businesses that benefit from barriers to entry and/or low production costs.
