Brookfield Expands Industrial Portfolio with Chemelex Acquisition
United States, Monday, 3 February 2025.
Brookfield Asset Management has acquired Chemelex for $1.7 billion, enhancing its capabilities in electric heat trace systems, which are crucial for regulating pipe temperatures across various sectors.
Strategic Acquisition Details
Brookfield Asset Management (NYSE: BAM, TSX: BAM) completed the acquisition of Chemelex from nVent Electric Plc on February 3, 2025 [1]. The $1.7 billion deal was funded with approximately $830 million in equity, with Brookfield Business Partners contributing $210 million for a 25% interest [1]. This strategic move adds a global leader in electric heat tracing systems to Brookfield’s portfolio, which currently manages over $1 trillion in assets [1].
Leadership Transition
As part of the transition, Chemelex appointed David Prystash as CEO on January 30, 2025, succeeding Brad Faulconer [4]. Prystash, who previously served as CEO of International Automotive Components Group, brings significant leadership experience to guide Chemelex in its new phase as an independent company [4]. The appointment demonstrates Brookfield’s commitment to positioning Chemelex for growth under experienced management.
Business Performance and Market Position
Chemelex brings to Brookfield a strong market position with its portfolio of renowned brands including Raychem, Tracer, Pyrotenax, and Nuheat [4]. The company has been a pioneer in electric heat tracing since its invention in 1972 [1], providing essential thermal management solutions across industrial, commercial, and residential markets. Dave Gregory, Managing Partner at Brookfield’s Private Equity Group, highlighted Chemelex’s position as ‘a global market leader providing an essential product and service with extensive connectivity to the Brookfield ecosystem through its end markets’ [1].
Financial Outlook
The acquisition comes at a time when Brookfield Business Partners has demonstrated strong financial performance, with adjusted EBITDA reaching $2.6 billion in Q4 2024 [2]. The industrial segment, where Chemelex will be positioned, showed particularly robust growth with EBITDA increasing to $1.2 billion in 2024, up from $855 million in 2023 [2]. This strategic acquisition is expected to further strengthen Brookfield’s industrial portfolio and contribute to its long-term growth objectives [1].