Brookfield buys US auto parts maker DexKo Global for $ 3.4 billion

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The operation will be funded with approximately US $ 1.1 billion in equity

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Brookfield Business Partners LP and its institutional partners announced Monday that they will acquire US auto parts maker DexKo Global Inc. from private equity firm KPS Capital Partners LP for $ 3.4 billion.

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Headquartered in Novi, Michigan, DexKo produces engineered undercarriages and trailer frames and employs more than 6,000 people. KPS Capital Partners acquired DexKo Global from Sterling Group LP in 2017.

Brookfield Business Partners, which is the publicly traded commercial and industrial services arm of Brookfield Asset Management in Canada, said the transaction would be funded with approximately $ 1.1 billion in equity.

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Brookfield plans to invest around US $ 400 million in the transaction, which is expected to close by the end of the year, with the remainder of the funding being provided by its institutional partners.

The company said the funding would be led by a syndicate of banks that includes Credit Suisse, Deutsche Bank, BMO Capital Markets, Bank of America, Goldman Sachs and RBC Capital Markets.

© Thomson Reuters 2021


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