Global investment firm Brookfield Asset Management acquired a 19.7% stake in Duke Energy Florida for $6 billion. Duke Energy said Tuesday that it plans to use proceeds to further its energy modernization strategy and reduce debt.
The companies said Brookfield will provide Florida Progress with $2.8 billion cash early next year upon close, following regulatory approval. As part of the deal announced Tuesday, Brookfield will invest another $200 million by the end of 2026 with an additional $2 billion in 2027 and the final $1 billion in 2028. Brookfield, which moved its global headquarters to Manhattan from Toronto in November, said it has the option to acquire its interest sooner.
Kirkland & Ellis is advising Brookfield on the deal. Skadden, Arps, Slate, Meagher & Flom is serving as Duke Energy’s legal advisor.
Sam Pollock, CEO of Brookfield’s infrastructure group, said the transaction underscores the firm’s “patient strategy of partnering with leading corporates and investing in essential infrastructure assets that underpin economic growth and generate stable long-term cash flows across market cycles.”
Duke Energy Florida provides electricity to 2 million customers across central and western parts of the Sunshine State. The Brookfield investment will help with the utility’s grid modernization and resiliency initiatives while also expanding generation capacity.
Based in Charlotte, North Carolina, Duke Energy provides natural gas to 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky and electricity to 8.6 million in those five states and Florida.
Duke Energy said the investment supports the company’s expected earnings per share growth rate of 5 percent to 7 percent through 2029. The energy holding company reported earnings of $1.25 a share for the three months ended June 30, up from $1.13 the year earlier.
Earlier this year, Duke Energy named Harry Sideris, president and chief executive, replacing Lynn Good, who retired after more than 11 years as CEO. Sideris was also named a director and assumed his new roles on April 1.
Brookfield Outside Legal Counsel: Kirkland & Ellis
Kirkland Texas Lawyers: Brittany Sakowitz and Chandler Spinks in Houston, Kim Hicks and Cat Leveque in Austin; Elsewhere: Greg Howling and Jacqueline Trudeau in New York, John Decker and Roald Nashi in Washington, D.C.
Brookfield Financial Advisors: RBC Capital Markets
Duke Energy Outside Counsel: Skadden, Arps, Slate, Meagher & Flom lawyers based in Washington, D.C.
Duke Energy Financial Advisor: JPMorgan Chase Securities