Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN) has agreed to sell its 100% equity stake in Brookfield RPS Limited (BGRS) to Relo Group, Inc. (TSE: 8876) of Tokyo, Japan for ¥23 billion or US $206 million.
Relo Group is Japan’s only provider of comprehensive outsourcing services in corporate fringe benefit.
Brookfield Business Partners said it expects to generate net proceeds of approximately US $230 million from the sale.
Toronto based BGRS is one of the largest global providers of executive relocation services. The company provides best-in-class talent mobility solutions, managing over 60,000 corporate and government client relocations annually in more than 140 countries from its 14 global offices.
In November 2008, Brookfield Asset Management Inc. (NYSE: BAM; TSX: BAM.A; EURONEXT: BAMA) acquired GMAC Home Services, a U.S. provider of home financing, real estate brokerage and relocation services, from Cerberus Capital Management and General Motors. GMAC Home Services included GMAC Global Relocation Services, GMAC Real Estate and GMAC Home Services Mortgage.
In May 2009, Brookfield re-branded GMAC Global Relocation Services as Brookfield RPS or BGRS.
Under Brookfield’s ownership, BGRS has expanded its service lines and executed a number of growth initiatives to become a global leader with a long-standing track record providing comprehensive mobility services to corporate and government clients.
The BGRS transaction is expected to close on or about May 31, 2019.
BGRS is Brookfield Business Partners’ second major exit announced this year.
On March 11, 2019, Brookfield Business Partners, together with institutional partners, reached an agreement to sell BGIS, a leading global provider of facilities management services to CCMP Capital Advisors, LP for approximately US $1 billion. BGIS deal is also expected to close in Q2 2019.
photo credit: BGRS
News Release
BROOKFIELD BUSINESS PARTNERS TO SELL BGRS
BROOKFIELD NEWS, April 25, 2019 – Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) (“Brookfield Business Partners”) today announced an agreement to sell its 100% stake in BGRS, one of the largest global providers of executive relocation services, to Relo Group, Inc. Brookfield Business Partners expects to generate net proceeds of approximately $230 million from the sale.
BGRS provides best-in-class talent mobility solutions, managing over 60,000 corporate and government client relocations annually in more than 140 countries from its 14 global offices. Under Brookfield’s ownership for many years, BGRS has expanded its service lines and executed a number of growth initiatives to become a global leader with a long-standing track record providing comprehensive mobility services to corporate and government clients.
Closing is subject to customary closing conditions and is expected to occur in the second quarter of 2019.
Advisors
CIBC Capital Markets and BFIN Securities, LP are acting as financial advisors to Brookfield Business Partners.
Brookfield Business Partners is a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the New York and Toronto stock exchanges. Important information may be disseminated exclusively via the website; investors should consult the site to access this information.
Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management Inc. (NYSE: BAM)(TSX: BAM.A)(EURONEXT: BAMA), a leading global alternative asset manager with more than $350 billion of assets under management. For more information, please visit our website at https://bbu.brookfield.com
Media
Claire Holland Brookfield Business Partners Tel: +1 416 369 8236 Email: claire.holland@brookfield.com
Investor Relations
Gwyn Hemme Brookfield Business Partners Tel: +1 416 359 8632 Email: gwyn.hemme@brookfield.com