Home and commercial energy services firm Enercare has agreed to be bought by Brookfield Asset Management’s infrastructure arm in a C$4.3bn (€2.84bn) deal.
Brookfield Infrastructure has agreed to pay C$29.00 for each Enercare share in a transaction valued at C$4.3 bn including debt.
The amount being paid by the asset manager is a 53% premium to the share’s closing price prior to the announcement.
Brookfield Infrastructure Partners expects to fund, after the assumption of debt, around US$630m (€542.5m) of the deal, with the remaining being funded by its institutional partners.
The transaction which has received the approval of Enercare’s board of directors is subject to approval by Enercare shareholders.
Jim Pantelidis, the chairman of Enercare’s board of directors, said: “Enercare’s strong management team has accomplished tremendous growth since our initial public offering in 2002. Since inception, we have generated a total return for shareholders of approximately 960%, and we have created one of North America’s premier providers of home and commercial services.
“The board of directors believe that the transaction provides significant value for our shareholders benefiting all stakeholders, and unanimously recommends that they vote in favour of the transaction.”
Sam Pollock, the CEO of Brookfield Infrastructure, said: “We are excited to be acquiring Enercare, a high-quality business that has established a leadership position in North America.
“It benefits from stable, long-term cash flows through equipment rentals to a well-established customer base, and we see attractive opportunities to grow the business and continue to create value, leveraging Brookfield’s significant presence in the utility, home building and multi-residential sectors across Canada and the US.”