Brookfield Business Partners with its institutional partners has entered an agreement to acquire 60% of Teekay Offshore Partners.
Specialising in production and logistics, Teekay Offshore Partners focuses on providing marine services and solutions to the offshore oil industry.
Brookfield's total investment is expected to be nearly $750m.
Teekay Corporation will also co-invest in Teekay Offshore to retain a 14% ownership alongside Brookfield.
Brookfield Business Partners CEO Cyrus Madon said: “Teekay Offshore has established itself as a global leader in the provision of marine services to the offshore oil production industry.
“Our investment represents an opportunity to acquire a high-quality, highly contracted business with presence in attractive markets, and we look forward to supporting Teekay Offshore with its continued growth.”
Brookfield has planned to invest $610m in newly issued common units of Teekay Offshore and will procure another $200m loan to Teekay Offshore from Teekay Corporation at a discount rate.
It will also purchase 49% of Teekay Offshore GP (TOO GP), the general partner of Teekay Offshore, while Teekay Corporation will continue to hold 51% of TOO GP.
Brookfield has the option to acquire additional 2% of TOO GP, subject to the fulfilment of certain conditions.
After closing the transaction, Brookfield will be entitled to appoint four of nine directors to TOO GP Board.
Teekay Offshore provides multiple services such as transportation, oil production, storage, towing and offshore installation and maintenance for the offshore industry.
The company is specifically active in the offshore oil regions of the North Sea, Brazil, and Canada.
Teekay Offshore has consolidated assets of $5.6bn and a fleet of 62 offshore vessels.