Brookfield Business Partners Announces Sale of Assets to Seed New Evergreen Private Equity Strategy
Brookfield Business Partners (NYSE: BBUC) has announced a significant transaction involving the sale of partial interests in three portfolio companies to seed a new evergreen private equity strategy managed by Brookfield Asset Management. The company will sell approximately 12% of DexKo, 7% of CDK Global, and 5% of BrandSafway to the New Fund.
The transaction, valued at approximately $690 million, will be executed at an 8.6% discount to NAV. Brookfield Business Partners will receive units in the New Fund, which are expected to be redeemed for cash within an 18-month period following the fund's initial closing. The transaction has received a fairness opinion from independent advisors and is expected to close on July 4, 2025.
Brookfield Business Partners (NYSE: BBUC) ha annunciato una transazione importante che prevede la vendita di partecipazioni parziali in tre società del proprio portafoglio per finanziare una nuova strategia evergreen di private equity gestita da Brookfield Asset Management. L'azienda venderà circa il 12% di DexKo, il 7% di CDK Global e il 5% di BrandSafway al Nuovo Fondo.
La transazione, valutata circa 690 milioni di dollari, sarà eseguita con uno sconto dell'8,6% sul valore patrimoniale netto (NAV). Brookfield Business Partners riceverà quote nel Nuovo Fondo, che si prevede saranno riscattate in contanti entro un periodo di 18 mesi dalla chiusura iniziale del fondo. La transazione ha ottenuto un parere di equità da consulenti indipendenti e si prevede che si concluderà il 4 luglio 2025.
Brookfield Business Partners (NYSE: BBUC) ha anunciado una transacción significativa que implica la venta de participaciones parciales en tres compañías de su cartera para financiar una nueva estrategia evergreen de capital privado gestionada por Brookfield Asset Management. La empresa venderá aproximadamente el 12% de DexKo, el 7% de CDK Global y el 5% de BrandSafway al Nuevo Fondo.
La transacción, valorada en aproximadamente 690 millones de dólares, se realizará con un descuento del 8,6% sobre el valor neto de los activos (NAV). Brookfield Business Partners recibirá unidades en el Nuevo Fondo, que se espera sean redimidas en efectivo dentro de un período de 18 meses tras el cierre inicial del fondo. La operación ha recibido una opinión de equidad por parte de asesores independientes y se espera que cierre el 4 de julio de 2025.
Brookfield Business Partners (NYSE: BBUC)는 Brookfield Asset Management가 관리하는 새로운 에버그린 사모펀드 전략에 자금을 조달하기 위해 세 개 포트폴리오 회사의 일부 지분을 매각하는 중대한 거래를 발표했습니다. 회사는 신규 펀드에 대해 DexKo의 약 12%, CDK Global의 7%, BrandSafway의 5%를 매각할 예정입니다.
약 6억 9천만 달러 규모의 이번 거래는 순자산가치(NAV) 대비 8.6% 할인된 가격으로 진행됩니다. Brookfield Business Partners는 신규 펀드에서 지분을 받으며, 이 지분은 펀드 초기 마감 후 18개월 이내에 현금으로 상환될 예정입니다. 독립 자문사로부터 공정성 의견을 받았으며, 거래는 2025년 7월 4일에 완료될 예정입니다.
Brookfield Business Partners (NYSE : BBUC) a annoncé une transaction importante impliquant la vente de participations partielles dans trois sociétés de son portefeuille afin de financer une nouvelle stratégie evergreen de capital-investissement gérée par Brookfield Asset Management. La société vendra environ 12 % de DexKo, 7 % de CDK Global et 5 % de BrandSafway au Nouveau Fonds.
La transaction, évaluée à environ 690 millions de dollars, sera réalisée avec une remise de 8,6 % par rapport à la valeur nette d'inventaire (VNI). Brookfield Business Partners recevra des parts du Nouveau Fonds, qui devraient être rachetées en espèces dans un délai de 18 mois suivant la clôture initiale du fonds. La transaction a reçu un avis d'équité de la part de conseillers indépendants et devrait se conclure le 4 juillet 2025.
Brookfield Business Partners (NYSE: BBUC) hat eine bedeutende Transaktion angekündigt, bei der Teilbeteiligungen an drei Portfoliounternehmen verkauft werden, um eine neue Evergreen-Private-Equity-Strategie zu finanzieren, die von Brookfield Asset Management verwaltet wird. Das Unternehmen wird etwa 12% von DexKo, 7% von CDK Global und 5% von BrandSafway an den neuen Fonds verkaufen.
Die Transaktion, die mit etwa 690 Millionen US-Dollar bewertet wird, erfolgt mit einem 8,6%igen Abschlag auf den Nettoinventarwert (NAV). Brookfield Business Partners erhält Anteile am neuen Fonds, die voraussichtlich innerhalb von 18 Monaten nach dem erstmaligen Closing des Fonds in bar eingelöst werden. Die Transaktion wurde von unabhängigen Beratern als fair bewertet und soll am 4. Juli 2025 abgeschlossen werden.
- None.
- Reduction in ownership stakes of three key portfolio companies
- 8.6% discount to NAV on initial transaction represents value loss
- 18-month redemption period creates temporary liquidity constraint
Insights
Brookfield's $690M partial asset sale creates value through premium pricing while maintaining control of key portfolio companies.
Brookfield Business Partners is monetizing minority stakes in three portfolio companies (DexKo, CDK Global, and BrandSafway) at attractive valuations that exceed its current trading price. This transaction represents a strategic capital recycling event that creates immediate value for unitholders while maintaining operational control of these businesses.
The transaction structure is particularly notable. Brookfield will receive $690 million in units of a new evergreen private equity fund targeting high-net-worth investors, priced at just an 8.6% discount to NAV. The redemption mechanism (redemption at 8.6% discount to NAV for 18 months, then at full NAV) provides clear visibility on monetization timing. This transaction effectively arbitrages the gap between private market valuations and Brookfield's public market trading discount.
For Brookfield, this represents an efficient partial exit that unlocks capital without giving up control. The proceeds will strengthen Brookfield's balance sheet through three channels: accelerating share buybacks (potentially at attractive discounts to NAV), reducing corporate leverage, and funding future growth investments. The transaction also creates an elegant solution for Brookfield Asset Management to seed its new private equity fund with quality assets that have established performance track records.
The deal's governance was properly managed through independent committees and fairness opinions, mitigating potential conflicts of interest between Brookfield Business Partners and its parent Brookfield Asset Management. This disciplined approach to related-party transactions should provide confidence to investors regarding the valuation achieved.
• Transaction enables Brookfield Business Partners to monetize a partial interest in three businesses at a value accretive to the trading price of its units and shares
• Provides new evergreen private equity strategy with an immediate, diversified portfolio
• The Transaction was subject to a rigorous, independent review process which included a fairness opinion provided by an independent third-party financial advisor
BROOKFIELD, NEWS, July 03, 2025 (GLOBE NEWSWIRE) -- Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC), today announced that it has reached an agreement to sell a portion of its interest in three businesses (the “Transaction”) to a new evergreen private equity strategy (the “New Fund”) targeting high-net-worth investors, managed by Brookfield Asset Management.
Under the terms of the Transaction, Brookfield Business Partners will sell an approximate
Brookfield Business Partners will receive units of the New Fund (the “Units”) with an initial redemption value of approximately
A joint independent committee comprising independent directors of Brookfield Business Partners retained an independent financial advisor and external legal counsel to assist with their review of the Transaction. The joint independent committee received a fairness opinion from their independent financial advisor, and following consultation with their advisors determined that the Transaction is fair and in the best interests of Brookfield Business Partners.
Anuj Ranjan, CEO of Brookfield Business Partners said, “The Transaction provides a strong outcome for Brookfield Business Partners’ unitholders and shareholders and provides the new evergreen private equity strategy with an immediate diversified seed portfolio prior to its launch. The realization of these partial interests, at a value that is accretive to the trading price of our units and shares, enables Brookfield Business Partners to continue to accelerate the return of capital under current and future buyback programs, reinvest in the growth of its business and reduce corporate leverage.”
The sale is expected to be completed on July 4, 2025.
Independent Review Process
The Transaction was reviewed by independent committees (the “Independent Committees”) formed by the boards of directors of the general partner of Brookfield Business Partners L.P. and of Brookfield Business Corporation (collectively, the “Boards”), which are comprised of independent directors. The Independent Committees retained Stikeman Elliott LLP as their external counsel and Origin Merchant Partners as their independent financial advisor to assist in their review of the Transaction.
The Independent Committees received an opinion from Origin Merchant Partners that, subject to various assumptions, qualifications and limitations to be set forth in its opinion letter, the consideration to be received by Brookfield Business Partners L.P. and Brookfield Business Corporation pursuant to the Transaction is fair, from a financial point of view, to Brookfield Business Partners L.P. and Brookfield Business Corporation.
After consultation with their independent financial and legal advisors, the Independent Committees unanimously determined that the Transaction is fair to and in the best interests of Brookfield Business Partners L.P. and Brookfield Business Corporation, and unanimously recommended to the Boards that Brookfield Business Partners L.P. and Brookfield Business Corporation approve the Transaction. The Boards have unanimously (excluding conflicted directors, who did not participate in deliberations) determined that the Transaction is in the best interests of Brookfield Business Partners L.P. and Brookfield Business Corporation and approved the Transaction.
As the value of the Transaction is less than
Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership or Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation. For more information, please visit https://bbu.brookfield.com.
Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over
For more information, please contact:
| Investor Relations: Alan Fleming Tel: +1 416 645 2736 Email: alan.fleming@brookfield.com | Media: Marie Fuller Tel: +44 207 408 875 Email: marie.fuller@brookfield.com |
Cautionary Statement Regarding Forward-looking Statements and Information
Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements with respect to the CDK Global, BrandSafway and DexKo businesses, their growth and leadership prospects and the Transaction described in this news release, including the expected redemption value of the Units, the timeline for redemption and the use of the proceeds therefrom, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “views”, “potential”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.
Although we believe that such forward-looking statements are based upon reasonable assumptions and expectations, investors and other readers should not place undue reliance on forward-looking statements and information because they involve assumptions, known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Business Partners, CDK Global, BrandSafway and/or DexKo to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations and our plans and strategies may vary materially from those expressed in the forward-looking statements and forward-looking information herein.
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to, the following: the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation, commodity prices and volatility in the financial markets; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; business competition, including competition for acquisition opportunities; strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; changes to U.S. laws or policies, including changes in U.S. domestic and economic policies as well as foreign trade policies and tariffs; technological change; litigation; cybersecurity incidents; the possible impact of international conflicts, wars and related developments including terrorist acts and cyber terrorism; operational, or business risks that are specific to any of our business services operations, infrastructure services operations or industrials operations; changes in government policy and legislation; catastrophic events, such as earthquakes, hurricanes and pandemics/epidemics; changes in tax law and practice; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States including those set forth in the “Risk Factors” section in our annual report for the year ended December 31, 2024 filed on Form 20-F.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.
FAQ
What assets is Brookfield Business Partners (BBUC) selling in July 2025?
How much is Brookfield Business Partners receiving for the asset sale?
When can Brookfield redeem the units received from the transaction?
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Was the Brookfield Business Partners transaction independently reviewed?
