Benzinga | Jun 28, 2021 10:43AM EDT

Brookfield Business Partners Sunday Reported Purchase Of Modulaire Group For ~$5B

Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU) ("Brookfield Business Partners") together with institutional partners (collectively "Brookfield") today announced an agreement to acquire Modulaire Group ("Modulaire") for approximately $5 billion.

Modulaire is a leading provider of modular leasing services in Europe and Asia-Pacific meeting the needs of a diversified customer base across the industrial, infrastructure and public sectors. With a global fleet of approximately 260,000 modular units across 25 countries, Modulaire services more than 48,000 customers through an established network of approximately 180 branches. Its modular units provide customers a wide range of attractive, cost effective and environmentally friendly solutions for temporary space requirements.

"We are pleased to expand our European operations with the acquisition of Modulaire, a market leader in the attractive, growing modular workspace sector," said Anuj Ranjan, Managing Partner, Brookfield Business Partners. "We look forward to bringing our global scale and capabilities in owning and operating leading infrastructure services businesses to support Modulaire's growth, in partnership with the management team."

Investment Highlights

* Leading market position. Modulaire is a market leader in Europe's largest economies. Its large-scale branch network and differentiated service offerings contribute to strong, longstanding relationships with a diverse customer base.

* Stable and diversified cashflows. Modulaire is geographically diversified with significant exposure to stable infrastructure, public sector and industrial end markets supported by strong underlying demand and low customer concentration.

* Favorable market dynamics. Modular spaces meet a structural shift in customer demand for flexible and sustainable solutions with smaller carbon footprints. The business is well positioned to benefit from industry tailwinds including growing infrastructure and public sector investment, and where there is increased demand for leasing or modular solutions to replace permanent construction.

* Opportunities for growth and margin expansion. Modulaire will continue to focus on acquisition and new market entry opportunities, branch network expansion across Europe, operational improvements and growth of ancillary services.

* Commitment to sustainability. Modulaire has a longstanding, demonstrated commitment to sustainable operations as modular spaces are reusable and reconfigurable, reducing waste and maximizing their useful life.

Funding

Brookfield's investment will be funded with approximately $1.6 billion of equity. Brookfield Business Partners intends to fund approximately $500 million, with the balance being funded by institutional partners. Prior to or following closing, a portion of Brookfield Business Partners' commitment may be syndicated to other institutional investors.

Transaction Process

Closing of the transaction remains subject to customary closing conditions including regulatory approvals. Closing is expected by the end of 2021.