Asset manager TPG is acquiring US solar renewable-energy firm Altus Power in a $2.2bn (€2.1bn) take-private transaction.
The manager’s TPG Rise Climate transition infrastructure arm is offering NYSE-listed Altus Power shareholders $5 per share, a 66% premium over the company’s closing price on 15 October 2024, the last trading day before its strategic alternatives review was announced.
The all-cash deal values Altus Power at $2.2bn, including debt.
The Altus Power board said it has approved the transaction and recommends that shareholders approve the merger agreement at a special meeting.
Altus Power, the largest US commercial-scale clean-energy provider, serves commercial, industrial, public sector and community solar customers. The company originates, develops, owns and operates local solar generation, energy storage and charging infrastructure nationwide.
Gregg Felton, CEO of Altus Power, said: “This partnership strengthens our ability to serve both our community solar and commercial clients with clean electric power at a time when demand for power is expected to grow substantially.
“As a private company, Altus Power will be better positioned for continued long-term growth, which we believe will allow us to scale our operations, drive innovation and enhance the value we deliver to our customers.”
Christine Detrick, board chair of Altus Power, said: “On behalf of the Altus Power board of directors, we’re pleased to have unanimously approved this transaction with TPG Rise Climate and believe this partnership is a natural fit, with strong synergies that will drive growth and innovation.
“This transaction will unlock significant value for our stockholders, customers and employees and we are confident it is in the best interest of the company’s long-term success.”
Scott Lebovitz, a managing partner and head of infrastructure for TPG Rise Climate, said: “We are excited to partner with Altus Power, which has established itself as a leader in commercial scale, clean power solutions with an exceptional track record of growth.”
Steven Mandel, business unit partner at TPG Rise Climate, said: “The leadership team’s innovation, commitment to its customers and operational excellence align with our investment philosophy.
“We look forward to supporting Altus Power in its next chapter of growth, providing affordable and sustainable power to businesses and households.”
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