MARKHAM
The Public Sector Pension Investment Board is paying $1.6 billion to acquire a 50 percent stake in Ontario-based home services company Enercare Inc. from Brookfield Asset Management Ltd.
PSP Investments announced the agreement on Nov. 9, 2026. The deal is expected to close in the first half of 2027, subject to regulatory approvals.
"We just think it's really a strong, long-term business for us," said Andrew Alley, PSP's global head of infrastructure investments.
Markham, Ont.-based Enercare rents and sells equipment such as water heaters, furnaces, air conditioners and water purifiers, as well as protection plans, to more than 1.4 million homes and businesses in Canada. The company has a leading market share in Ontario and has expanded into Quebec and Western Canada since Brookfield took it private in 2018 in a deal worth $4.3 billion including debt.
PSP has been a small, passive investor in Enercare since that 2018 privatization and is now taking over joint ownership with Brookfield. Brookfield will remain a partner, and Enercare's current management team will stay in place.
"We are excited to continue executing on our strategy with the continued support of two long-term investors who share our commitment to customer service, operational excellence and strategic growth," said Nick Perreten, president and CEO of Enercare.
PSP is making the investment through its High Inflation Correlated Infrastructure portfolio. Alley said the company's "strong customer relationships, recurring revenue model and strong market position make it a highly attractive long-term infrastructure investment."
PSP declined to disclose Enercare's current enterprise value, including any debt it carries. But Alley said the company's "customer base has been growing, as has the product offering."
The deal adds to PSP's $75-billion portfolio of investments in Canada, which the pension fund aims to increase to $100 billion in the next few years. PSP invested more than $10 billion in Canada in the fiscal year ended March 2026.
"We're encouraged by the opportunity set in Canada," Alley said. "Canada is stacking up very well on how it aligns with our areas of focus."
PSP and Brookfield plan to grow Enercare by expanding its customer base and introducing new products and services. The company also provides sub-metering contracts for condominium and apartment suites in Canada.
PSP manages $321 billion for pension plans in the federal public service, the Canadian Forces, Royal Canadian Mounted Police and military reserves.
BMO Capital Markets and TD Securities were financial advisers to PSP, and CIBC Capital Markets and Scotiabank advised Brookfield. Blake, Cassels & Graydon LLP acted as PSP's legal counsel, and McCarthy Tétrault represented Brookfield.
This story was written by the e2gold.ca newsroom from reporting by The Globe and Mail, HPAC Magazine, richtv.io and Securities.io. Quotes are checked word for word against that reporting.