PSP Investments to acquire 50% of Enercare for C$1.6 billion

By Olivia Hart

PSP Investments has agreed to acquire a 50% ownership interest in Enercare from Brookfield and institutional partners for approximately C$1.6 billion, the Canadian pension manager said. PSP said the deal expands its domestic infrastructure portfolio and creates shared ownership with Brookfield in Enercare, which it described as one of Canada’s largest residential and commercial infrastructure service providers.

What does PSP gain from Enercare?

Enercare supplies household and commercial equipment, including water heaters, heating and cooling systems and water purification products, PSP said. Its business includes equipment rental, installation, maintenance and related products. It also provides maintenance and protection services.

PSP said Enercare serves more than 1.4 million homes and businesses throughout Canada. PSP said operations remain concentrated in Ontario and Quebec, with an expanding presence in western Canadian provinces.

PSP identified recurring revenue and enduring customer relationships around essential infrastructure as central to the investment case. But PSP’s announcement disclosed no Enercare revenue, margin, retention, contract-duration or customer-churn figures, leaving the durability of those claims untested.

PSP said it will place the investment in its High Inflation Correlated Infrastructure portfolio. PSP describes that portfolio as targeting assets that may resist inflation through contractual arrangements, pricing structures or demand for essential services. It expects Enercare to rank among its most significant direct infrastructure holdings in Canada.

Andrew Alley, Managing Director and Global Head of Infrastructure Investments at PSP Investments, said:

“Enercare delivers equipment and services that Canadian households and businesses rely on every day. The company’s strong customer relationships, recurring revenue model and strong market position make it a highly attractive long-term infrastructure investment.

Held within our High Inflation Correlated Infrastructure (HICI) portfolio, it will rank among our most significant direct infrastructure investments in Canada, reflecting our conviction in investing where our local knowledge, relationships, and experience provide a distinct advantage. Together with Brookfield, we look forward to supporting Enercare’s growth and the quality of service it provides to its customers.”

In practical terms, PSP is buying exposure to essential-service demand, but the announcement provides too few operating metrics to test the recurring-revenue claim.

How do PSP and Brookfield share Enercare?

PSP said it first invested in Enercare in 2018 alongside Brookfield when the company was privatized. PSP said Enercare has since expanded its geographic footprint, including growth into Quebec and western Canada. PSP said the proposed transaction increases its direct ownership while allowing both institutional investors to support Enercare’s development.

The parties intend to pursue growth through additional customer relationships, new products and services, and continued operational improvements. Those goals lack financial targets, capital commitments or a timetable, so they remain plans rather than measurable promises.

PSP said Enercare will remain under its existing management team, and Nick Perreten will continue as President and CEO. Perreten said:

“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. We proudly serve Canadian families and businesses, and the backing of Brookfield and PSP will help make our customer promise even stronger.”

Neither investor quantified the promised improvement in Enercare’s customer proposition, leaving Perreten’s execution to become the first test of the shared-ownership model.

How large is PSP’s Canadian push?

PSP said the transaction supports its strategy of committing more capital in Canada. During the fiscal year ended March 2026, PSP invested more than C$10 billion domestically, increasing Canadian gross assets under management to more than C$75 billion.

The C$1.6 billion purchase equals no more than about 16% of PSP’s domestic investment pace for that fiscal year, based on the disclosed C$10 billion floor. That comparison shows the deal’s scale, but PSP released no expected return, yield or valuation multiple.

PSP expects its Canadian investment portfolio to exceed C$100 billion in the coming years. The pension manager also reported approximately C$320.6 billion in total net assets as of March 31, 2026. PSP’s announcement did not reconcile that net figure with its gross Canadian measure.

PSP said it was established in 1999 and invests funds associated with pension plans for the Canadian federal public service, Canadian Forces, Royal Canadian Mounted Police and Reserve Force. Its global portfolio spans public markets, private equity, real estate, infrastructure, natural resources and credit.

PSP framed Enercare as consistent with its focus on established Canadian businesses, recurring customer demand and long-term expansion. Yet the promised growth remains unpriced because the announcement includes no Enercare profit forecast or capital plan.

When will the deal close?

PSP expects to complete the acquisition during the first half of 2027, subject to customary regulatory approvals. The company gave no specific approval timetable or financing details.

According to PSP, BMO Capital Markets and TD Securities advise PSP Investments, while Blake, Cassels & Graydon provides legal counsel. CIBC Capital Markets and Scotiabank advise Brookfield, with McCarthy Tétrault serving as legal counsel.

PSP said the acquisition strengthens its essential-services infrastructure presence while maintaining its longstanding partnership with Brookfield. The announcement omitted governance terms, ownership allocations after closing and the capital each investor expects to provide.

Those omissions matter because the deal promises continuity, shared support and operational development without defining how the investors will divide control or fund growth. If approvals arrive in the first half of 2027, Enercare will enter shared ownership under Perreten, with both PSP and Brookfield continuing their support. The practical test will be whether new customer wins, products and operating gains emerge in Enercare’s financial results, not merely in the investors’ statements.