September 30, 2019 / 2:38 PM / in 5 months

Brookfield to take 45% stake in BrandSafway for $1.3 billion

(Reuters) - Investment manager Brookfield Business Partners LP (BBU_u.TO) (BBU.N) said on Monday it will pay $1.3 billion for a 45% stake in industrial services company BrandSafway from private equity firm Clayton, Dubilier & Rice (CD&R).

The deal values BrandSafway at about $6.7 billion, including debt of about $3.8 billion, according to Reuters calculations.

Brookfield said CD&R will own a 45% stake after the deal, with the remaining 10% to be held by BrandSafway’s management. CD&R first invested in BrandSafway in 2013.

The deal adds a construction services company, with customers including ExxonMobil Corp (XOM.N) and Royal Dutch Shell Plc (RDSa.L), to Brookfield’s portfolio.

Brookfield, a spinoff from Brookfield Asset Management (BAMa.TO), primarily invests in business services and industrial operations related companies.

Last year, the company bought Johnson Controls International Plc’s (JCI.N) power solutions business, in a deal valued at $13.2 billion.

BrandSafway provides services to more than 30,000 customers across 30 countries and generates more than $5 billion in annual revenue.

Debevoise & Plimpton LLP is the legal adviser to CD&R on the deal, which is expected to close in the first quarter of 2020.

Reporting by Arunima Kumar and Shariq Khan in Bengaluru; Editing by Sriraj Kalluvila

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