PSP Investments agrees to buy 50% stake in Enercare for $1.6 billion

PSP Investments has signed an agreement to acquire a 50% interest in Enercare Inc. from Brookfield and its institutional partners for $1.6 billion, according to a news release from PSP Investments.

The deal

Enercare is one of Canada's leading providers of essential home infrastructure, serving more than 1.4 million Canadian homes and businesses. The company provides water heaters, heating, ventilation and air conditioning equipment, water purification systems, protection plans, and related services. It has a strong presence in Ontario and Quebec and a growing footprint in Western Canada.

PSP Investments has been an investor in Enercare since 2018, when it co-invested alongside Brookfield in the privatization of Enercare. The company will continue to be led by its existing management team.

"Enercare delivers equipment and services that Canadian households and businesses rely on every day," said Andrew Alley, Managing Director and Global Head of Infrastructure Investments at PSP Investments. "The company's strong customer relationships, recurring revenue model and strong market position make it a highly attractive long-term infrastructure investment."

Closing and advisors

The transaction is expected to close in the first half of 2027, following the receipt of customary regulatory approvals.

BMO Capital Markets and TD Securities are acting as financial advisors, and Blake, Cassels & Graydon LLP is acting as legal counsel to PSP Investments. CIBC Capital Markets and Scotiabank are acting as financial advisors, and McCarthy Tétrault LLP is acting as legal counsel to Brookfield.

All figures are in Canadian dollars unless otherwise noted.

Why it matters

The $1.6 billion investment will deepen PSP Investments' Canadian portfolio, which currently exceeds $75 billion. In the fiscal year ended in March 2026, PSP Investments invested more than $10 billion in Canada, bringing its gross assets under management in the country to over $75 billion. It expects its Canadian investments to surpass $100 billion over the next few years.

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Sources

• theglobeandmail.com: PSP Investments to pay $1.6-billion for 50% stake in Brookfield’s Enercare - The Globe and Mail
• prnewswire.com: PSP Investments to acquire 50% of Enercare, one of Canada's leading home infrastructure platforms, for approximately $1.6 billion
• richtv.io: PSP Investments to pay $1.6-billion for 50% stake in Brookfield’s Ener… | RichTV
• newswire.ca: PSP Investments to acquire 50% of Enercare, one of Canada's leading home infrastructure platforms, for approximately $1.6 billion

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.