PSP agrees to buy half of Enercare for $1.6 billion

PSP Investments said on November 9 that it agreed to buy 50% of Enercare, a Markham company that rents and services water heaters, from Brookfield and its institutional partners for $1.6 billion. PSP manages money for the pensions of federal public servants, the Canadian Forces and the Royal Canadian Mounted Police, with $320.6 billion in net assets at March 31, 2026. PSP’s Andrew Alley said the appeal lies in Enercare’s customer relationships and its recurring revenue model, which means income that repeats, like rent, rather than arriving once at a sale.

Renting is an Ontario habit: the Competition Bureau Canada said many homeowners there rent their water heaters, unlike elsewhere in Canada, where most own. Its information suggested Enercare held about 80% of the rental gas water heater market in Enbridge Gas’s Ontario territory in 2018.

PSP has invested in Enercare since 2018, when it joined Brookfield in taking the company private. Existing management will stay, and the deal is expected to close in the first half of 2027, after regulatory approvals.

Sources: PSP Investments · Competition Bureau Canada