Japanese giant buy Multiplex
Japan’s Obayashi Corporation is set to buy Australian-founded Multiplex for up to US$650 million (c$925m) depending on future performance.
Brookfield is the seller.
Through its private equity strategy, the Canadian group held since 2007.
That seller was Perth-based John Roberts who established the company in 1962.
Obayashi recently announced plans to expand in Australia, Canada and the United Kingdom.
“Multiplex is a highly respected contractor with a strong track record of delivering complex, high-quality projects, and we have long admired its technical capabilities and market position,” chief executive, Toshimi Sato, said.
Multiplex sold again
Brookfield paid $4.2 billion for Multiplex after Mr Roberts split the construction business from a property portfolio.
That deal valued the enterprise at c$7.3b including debt.
The Canada group later separated the business into a real estate and facilities management operation.
Multiplex was established as a standalone company within Brookfield Business Corporation in 2016, delivering civic, commercial and residential projects in Australia, Canada and the United Kingdom (continues below).
Locally, it has been challenged by rising material costs, labour shortages and margin pressure.
The parent is reported to have tipped more than $500m to keep the company afloat amid three consecutive loss making years ($56m in 2023, $241m in 2024 and $220m last year).
Obayashi will pay an initial US$530m ($756m).
The balance could come as an earn-out linked to future performance.
“The transaction delivers a strong outcome for our shareholders, demonstrating our ability to continue to recycle capital and support the growth of our business,” Brookfield Private Equity Group chief executive, Anuj Ranjan, said.
“Since acquiring it, we have worked with management to sharpen operational focus, strengthen profitability and reposition the business for its next chapter,” he added.
Multiplex global chief executive John Flecker said the business would continue operating under its existing brand and leadership structure following completion.
“Our operations, projects and brand remain unchanged, and our leadership team will continue to lead the business into its next chapter,” according to the executive.
The deal, subject to regulatory approvals, is expected to be complete in the fourth quarter of this year.
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