The Caisse de dépôt et placement du Québec and Brookfield Business Partners is acquiring 100 per cent of Johnson Controls’ power solutions business for about $17.5 billion.
The business produces batteries for global automakers and aftermarket distributors and retailers for use in nearly all types of vehicles, including hybrid and electrical models.
“This transaction enables us to acquire not only the world leader in automotive batteries, but also a model in terms of environmental and health and safety measures, that runs one of the most efficient industrial recycling systems globally,” said Stéphane Etroy, executive vice-president and head of private equity at the Caisse, in a press release.
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The transaction will be funded with about $4 billion of equity and about $13.5 billion of long-term debt financing. The Caisse will commit to fund about 30 per cent of the equity on closing, with Brookfield Business Partners to fund the same and the balance funded by other institution partners.
“We look forward to partnering with the management team to continue growing this world-class business and build on its track record of innovation,” said Cyrus Madon, chief executive officer of Brookfield Business Partners.
The transaction is expected to close by June 30, 2019.
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