#Canada #Montreal #Brookfield #PSP Investments #Enercare

PSP Investments Acquires 50% of Enercare for $1.6 Billion

In a significant move to enhance its existing Canadian portfolio, the Public Sector Pension Investment Board (PSP Investments) has announced the acquisition of a 50% stake in Enercare Inc. for about $1.6 billion. This agreement was finalized with Brookfield and its institutional partners, marking a pivotal moment for both organizations amidst shifting market dynamics.

Enercare is renowned as one of Canada’s premier providers of essential home infrastructure, offering critical services such as heating, ventilation and air conditioning (HVAC) systems, water heaters, and water purification systems. Serving over 1.4 million homes and businesses, Enercare has a robust presence particularly in Ontario and Quebec, with plans to expand its reach further into Western Canada. The company’s Enercare Advantage® program stands out as a reliable choice for customers looking for cost-effective equipment options.

With the transaction, PSP Investments reinforces its belief in the strength of the Canadian market. The investment is a part of a broader strategy that has seen PSP invest over $10 billion in Canada in the fiscal year ending March 2026, pushing the total assets under its management in the country beyond $75 billion. The organization anticipates growth beyond $100 billion in the coming years by capitalizing on emerging lucrative opportunities like Enercare, leveraging its expertise and established market presence in infrastructure.

This partnership builds on a previous collaboration between PSP Investments and Brookfield. Both entities successfully co-invested in Enercare's privatization back in 2018. Their long-lasting relationship has supported Enercare’s expansion and solidification in the competitive landscape of home and commercial services. Since its privatization, Enercare has not only widened its operational footprint but has significantly enhanced its service offerings.

Nick Perreten, Enercare’s President and CEO, expressed enthusiasm for the future. He emphasized that the ongoing support from significant long-term investors like Brookfield and PSP not only strengthens their service promise but also aligns with their commitment to customer satisfaction and operational excellence. “We proudly serve Canadian families and businesses,” he stated, hinting at promising growth plans supported by these relationships.

Andrew Alley, Managing Director and Global Head of Infrastructure Investments at PSP, echoed this sentiment, highlighting Enercare’s pivotal role in the lives of Canadians. He described the company’s recurring revenue model and strong market position as attractive for long-term infrastructure investments. The acquisition will feature prominently within PSP’s High Inflation Correlated Infrastructure (HICI) portfolio, signifying Enercare as one of the most significant direct infrastructure investments in Canada to date.

Looking ahead, the transaction is set to close in the first half of 2027, pending customary regulatory approvals. Financial advisors like BMO Capital Markets and TD Securities are guiding the transaction, while legal counsel is being provided by Blake, Cassels & Graydon LLP for PSP Investments and McCarthy Tétrault LLP for Brookfield.

In summary, this investment not only illustrates PSP Investments’ robust strategy in expanding its reach into essential infrastructure but also continues a legacy of impactful partnerships that bolster service quality in the Canadian market. With Enercare’s trajectory and impending growth, the partnership promises a future of enhanced service delivery and infrastructure provision across Canada.