Brookfield-led group to buy Westinghouse Electric
TORONTO — Brookfield Business Partners LP and its partners will buy Westinghouse Electric Co. from Toshiba Corp. in a US$4.6-billion deal announced Thursday.
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 other 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 announced in November 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.
“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.