PSP Investments buys 50% of Enercare from Brookfield for C$1.6 billion

PSP Investments has signed an agreement to acquire a 50% interest in Enercare Inc. from Brookfield and its institutional partners for C$1.6 billion. The transaction is expected to close in the first half of 2027, subject to customary regulatory approvals.

Enercare provides water heaters, heating, ventilation and air conditioning equipment, water purification systems and protection plans, serving more than 1.4 million Canadian homes and businesses. It has a strong presence in Ontario and Quebec and a growing footprint in Western Canada. PSP Investments has invested in Enercare since 2018, when it co-invested with Brookfield in the company's privatization.

PSP Investments said the investment will be held in its High Inflation Correlated Infrastructure portfolio and will rank among its most significant direct infrastructure investments in Canada. Enercare will continue to be led by its existing management team. BMO Capital Markets and TD Securities are financial advisers to PSP Investments, with Blake, Cassels & Graydon LLP as legal counsel. CIBC Capital Markets and Scotiabank are financial advisers to Brookfield, with McCarthy Tétrault LLP as legal counsel.