Brookfield Business Partners L.P. and Sumitomo Corp. have together completed the acquisition of a 70% controlling stake in the core water, wastewater and industrial water treatment business of Odebrecht Ambiental, for a total investment of US$908 million. Under its new ownership, the business will be renamed BRK Ambiental.

Of the consortium's projected 70% stake in Odebrecht, Sumitomo's will come to 14%, or about US$250 million.

The investment is comprised of a payment of US$768 million to the seller and approximately US$140 million in additional capital contributed at closing to fund working capital requirements and support expected growth of the business. In addition, Brookfield Business Partners and its institutional partners expect to purchase a direct interest in related assets held through a joint venture for US$116 million.

As we reported in early January 2016, this plan to sell the water and sewage treatment unit came after Marcelo Odebrecht resigned as President and Chief Executive Officer (CEO) of the company. After 6 months in detention and given the developments in his court case, Marcelo Odebrecht, on 11 December, decided to formally resign from his post.

Cyrus Madon, CEO of Brookfield Business Partners, said:

“We are pleased to have completed the acquisition of the largest private water distribution, collection and treatment company in Brazil, and are encouraged by the number and scale of growth opportunities we see for it moving forward. We believe BRK Ambiental can capture a growing share of the water and sewage improvements planned in Brazil over the next two decades, supporting strong and stable returns for Brookfield Business Partners.”

FI-FGTS, the investment arm of Brazil’s Employees’ Severance Guarantee Fund, continues to own the remaining 30% interest in the business.