Brookfield Corporation announced a $900 million acquisition of Fosber, a leading designer and manufacturer of advanced corrugating machinery and digital monitoring solutions. The deal is a carve‑out from Guangdong Dongfang Precision and will be financed with $480 million of equity, including a $170 million contribution from Brookfield Business Partners. Fosber’s operations span Italy, the United States and China, positioning Brookfield to strengthen its presence in the high‑growth corrugated packaging market.
The acquisition aligns with Brookfield’s private‑equity strategy of acquiring industrial champions that can be operationally transformed into global leaders. Fosber’s technology‑driven product line and strong after‑sales network complement Brookfield’s expertise in scaling industrial businesses. The corrugated packaging industry is projected to grow substantially in the coming decade, driven by e‑commerce demand and a shift toward sustainable packaging, giving the combined entity a platform to capture new market share and accelerate digital transformation.
Brookfield’s Q3 2025 earnings, released the same day, showed revenue of $1.57 billion and an EPS of $0.56, slightly below the consensus of $0.5874. The miss was largely due to a 15‑basis‑point decline in the net spread of its Wealth Solutions segment and lower‑than‑expected share buybacks, rather than a fundamental weakness in its industrial portfolio. The acquisition of Fosber is therefore seen as a strategic counterbalance, adding a high‑margin, technology‑focused business that can help offset the earnings dip and support long‑term growth.
Brookfield Business Partners, the flagship listed vehicle of Brookfield’s private‑equity group, reported a Q3 2025 net loss of $59 million, a sharp decline from a $301 million net income a year earlier. Adjusted EBITDA fell to $575 million from $844 million year‑over‑year, driven by lower tax recoveries and partial sales of other interests. Despite the weaker quarterly performance, BBU committed $170 million to the Fosber deal, underscoring confidence in the target’s growth prospects and the strategic fit with Brookfield’s portfolio.
Anuj Ranjan, CEO of Brookfield’s Private Equity Group, said the acquisition would “position us as a market‑leading industrial technology business” and that the partnership would accelerate digital transformation and expand after‑sales services worldwide. Ranjan highlighted Fosber’s strong market share in Italy and the U.S. and its advanced digital monitoring solutions as key drivers of future revenue growth.
Market reaction to Brookfield’s Q3 2025 earnings was mixed: the company’s stock fell 7 % after the report, with analysts citing broader market rotation and a weaker Wealth Solutions spread as headwinds. However, the acquisition announcement was viewed positively by investors, reinforcing Brookfield’s long‑term industrial strategy and providing a clear growth engine in a high‑growth sector.
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