Acquisition financing in respect of the acquisition from Johnson Controls of the Power Solutions business for US$13.2B

Date Closed

April 01, 2019

Lead Office

Toronto

On November 13, 2018, Johnson Controls announced its agreement to sell its Power Solutions business to Brookfield Business Partners (Brookfield) and Caisse de dépôt et placement du Québec (CDPQ), as well as other institutional partners. The total value of the all-cash acquisition is approximately US$13.2 billion, making this the largest acquisition to date for Brookfield since the division went public in 2016.

Certain of the financing for the transaction was completed through various credit facilities from a large syndicate of banks and a high-yield note offering.

Power Solutions is focused on innovations in automobile battery technology.

Johnson Controls is a global diversified technology corporation based in Ireland, focused on energy solutions and power efficiency for buildings, transportation, and other infrastructure.

McCarthy Tétrault acted as local Canadian counsel to the initial purchasers in a high-yield note offering and as local Canadian counsel to the syndicate of banks that provided certain of the acquisition financing for the transaction with a team led by Andrew Parker (Capital Markets) and Justin Lapedus (Lending), and included Richard Higa (Lending), Heather Meredith (Restructuring) and Kabir Jamal (Tax)

People