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Enercare to be acquired by Brookfield Infrastructure

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August 10, 2018

Enercare Inc. (CNW Group/Enercare Inc.)

In a deal valued at $4.3 billion, Brookfield Infrastructure is set to acquire all issued and outstanding common shares of Enercare.

Enercare, one of North America’s largest home and commercial services companies, provides residential energy infrastructure, including water heaters, heating, ventilation, air conditioner rentals, as well as other home services to approximately 1.6 million customers annually and has a sub-metering business with 270,000 contracted services.

The transaction price of $29 per share represents a 53 per cent premium to the closing price of Enercare Shares on the TSX on July 31, 2018, the last trading day prior to the announcement of the transaction.

Enercare had formed a special committee to evaluate strategic and financial options, including options relating to capital structuring, future growth opportunities and a potential sale of the company in whole or in parts. The deal has the approval of this committee, as well as Enercare’s Board of Directors.

”We are pleased to announce today a transaction for Enercare that benefits all stakeholders of the company. We have concluded a transaction with Brookfield that recognizes the value that has been created at Enercare over the last 16 years. Brookfield is recognized as a leading infrastructure investor worldwide and I am confident they will provide opportunity for employees of Enercare and capital to continue growing the business,” commented Jim Pantelidis, chairman of Enercare’s Board of Directors and chairman of the special committee.

”We are excited to be acquiring Enercare, a high-quality business that has established a leadership position in North America,” said Sam Pollock, CEO of Brookfield Infrastructure. ”It benefits from stable, long-term cash flows through equipment rentals to a well-established customer base, and we see attractive opportunities to grow the business and continue to create value, leveraging Brookfield’s significant presence in the utility, home building and multi-residential sectors across Canada and the U.S.”