Brookfield joins institutional partners to acquire trailer parts maker DexKo for $3.4bn to capture strong performance

Brookfield Business Partners has teamed with institutional partners to agree a buyout of trailer component manufacturer DexKo Global for $3.4bn. The investment will be funded with about $1.1bn of equity, of which Brookfield Business Partners intends to invest around $400m.

DexKo provides components for trailers, recreational vehicles and towable equipment across North America, Europe and Australia. The firm said the company has a clear competitive differentiation with its vertically integrated manufacturing network, broad product offering and distribution capabilities to play a strategic role in the fragmented value chain.

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Track record of the company’s cash flow generation is also consistent and is supported by resilient underlying demand, diverse end markets and geographical scale, Brookfield added.

Mark Weinberg, managing partner at Brookfield Business Partners, said, “We are pleased to grow our industrials operations with the acquisition of DexKo, a market leader known for quality and reliability. DexKo’s world-class management team has delivered consistently strong performance and we are excited to partner with them to further build on an established track record of value creation.”

Brookfield Business Partners bought modular buildings specialist Modulaire Group from TDR Capital last month for $5bn after a 17-year investment period.

The firm is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with over $600bn of assets under management.

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