Brookfield Business Partners announced an agreement to sell a portion of its interests in three businesses to a new evergreen private equity strategy managed by Brookfield Asset Management. The transaction involves selling an approximate 12% interest in its engineered components manufacturing operation, DexKo, a 7% interest in its dealer software and technology services operation, CDK Global, and a 5% interest in its work access services operation, BrandSafway.
Under the terms of the agreement, Brookfield Business Partners will receive units of the new fund with an initial redemption value of approximately $690 million. This value represents an 8.6% discount to the net asset value of the interests sold. The sale is expected to be completed on July 4, 2025, following a rigorous independent review process.
The strategic rationale behind this divestiture is to accelerate the return of capital under current and future buyback programs, reinvest in the growth of its businesses, and reduce corporate leverage. This move is considered accretive to the market value of BBU, providing significant financial flexibility for future capital allocation priorities.
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