Toronto-headquartered Brookfield Business Corp. (NYSE, TSX: BBUC), a global owner and operator of industrial and business services operations, is selling its global construction business Multiplex to Obayashi Corp., one of Japan’s largest construction companies, for $650 million, including approximately $530 million of cash proceeds on closing and an earn-out based on future business performance.
Multiplex has operations across Australia, Canada, and the UK, with developments in the commercial, residential, healthcare, infrastructure, hospitality and mixed-use sectors. It was founded in Australia in 1962 and was acquired by Brookfield in 2007. It became a standalone construction business as part of Brookfield in 2016.
“The transaction delivers a strong outcome for our shareholders, demonstrating our ability to continue recycling capital and support the growth of our business,” said Brookfield CEO Anuj Ranjan. “Multiplex is a leading global construction business with a track record of delivering some of the most complex large-scale projects in the world. Since acquiring it, we have worked with management to sharpen operational focus, strengthen profitability and reposition the business for its next chapter.”
Ranjan added, “With this transaction, we have secured nearly $1 billion in proceeds – equivalent to over $4 per share of cash from asset sales and distributions since the start of the year. Demand for what we do – buying and operationally transforming essential industrial and services businesses – has rarely been stronger. We are in an excellent position to build on our strong momentum in the second half of the year and continue compounding long-term value for shareholders.”
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